On Wednesday, graphics and chip manufacturer Nvidia is scheduled to release its second-quarter earnings. What’s interesting is that the tech company’s stocks are rising prior to the financial statement release.
On Monday, stocks for Nvidia were up by 7% to $495.15 per share. According to expert analysts, a revenue of $3.65 billion at $1.97 earning per share is expected. These numbers come as good news while Nvidia is set to make another big move potentially.
Nvidia, which supplies tech components to Apple, is reportedly in talks with another chip designer, Arm, to potentially purchase the company. Arm is currently up for sale by its owner Softbank. There has been an attempt to secure multiple buyers in on the deal to acquire Arm; Samsung, Nvidia, and Qualcomm were all approached to make the purchase. However, at this time, it’s said that Nvidia is seeking to make the purchase independently.
While it’s not yet known how much Nvidia is seeking to purchase Arm for, Softbank was initially seeking £40 billion. This purchase price is up from the original purchase price of £24 billion that Softbank paid for Arm in 2016. According to the Evening Standard, the British government may look upon any non-British sale of Arm as a problem. Previously, the British government had sought to keep Arm located there to support workforce efforts. The Evening Standard also reports that a deal to purchase Arm could potentially worsen Japanese and UK trade negotiations.
At the time of this article’s writing, Nvidia stock was up 6.98% to $494.855.
Disclosure: I/we have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Trader Buzz). I have no business relationship with any company whose stock is mentioned in this article.