Minority Recap
Nvidia Sells Its $155.8M Arm Stake
•February 18, 2026
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Why It Matters
Nvidia’s exit frees capital while preserving a critical technology partnership, underscoring confidence in Arm’s AI‑driven growth. The move signals a shift in how major chip players allocate resources amid escalating AI demand.
Key Takeaways
- •Nvidia divested $155.8M Arm stake.
- •Arm shares rose 1.4% premarket.
- •Arm Q3 revenue up 26% YoY.
- •Nvidia retains long‑term Arm license.
- •Arm market cap near $135B.
Pulse Analysis
Nvidia’s decision to offload its Arm stake reflects a broader recalibration of capital in the AI hardware race. After a high‑profile $40 billion acquisition attempt fell through on regulatory grounds, Nvidia opted for a modest equity position that it has now unwound. The sale, filed with the SEC, underscores that while outright ownership proved too risky, the strategic value of Arm’s architecture remains essential for Nvidia’s own Grace processors and future data‑center offerings.
Arm’s latest earnings paint a picture of robust momentum. Revenue surged 26% to $1.24 billion, driven by heightened AI workloads across cloud providers and device manufacturers. With a market capitalization hovering around $135 billion, the company is cementing its role as a foundational IP supplier to tech giants such as Meta, Google, Microsoft and Amazon. Analysts cite the firm’s elevated operating expenses as a deliberate investment in long‑term capacity, positioning Arm to capture expanding AI chip demand and maintain pricing power in a competitive licensing market.
The broader industry reads Nvidia’s stake reduction as a signal of shifting investment priorities. While the chipmaker continues to amass sizable positions in firms like Intel, Nokia and Synopsys, its retreat from direct equity in Arm suggests a focus on diversified exposure rather than deep integration. For investors, the continued licensing agreement assures that Nvidia will still benefit from Arm’s roadmap, while Arm’s strong financial performance and strategic partnerships provide a compelling growth narrative in the AI‑centric semiconductor landscape.
Deal Summary
Nvidia filed with the SEC on Tuesday, offloading its 1.1 million shares in Arm valued at $155.8 million. The sale ends Nvidia’s minority stake in the British semiconductor firm, which it had held since 2023 after a failed $40 billion acquisition attempt. Arm’s market cap remains around $135 billion.
Article
Source: CNBC – US Top News & Analysis
Arm shares edge higher in premarket as Nvidia shakes up its AI bets
Key Points
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The chip giant's exit from its stake in Arm does not spell the end of ties between the two companies, however.
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Nvidia's filing to the SEC on Tuesday showed it had offloaded semiconductor firm Arm.
The replica of the ARM is an electronic chip board during a collaborative ceremony launching a partnership between Malaysia and ARM Holdings in Kuala Lumpur, Malaysia, on March 5, 2025.
Hari Anggara | Nurphoto | Getty Images
New York‑listed shares of British semiconductor firm Arm ticked 1.4 % higher in pre‑market trading on Wednesday, after documents showed Nvidia sold its stake in the company it once wanted to buy.
At the end of the third quarter, Nvidia held 1.1 million shares of Arm with a value of $155.8 million. The chip giant's filing to the SEC on Tuesday showed it had offloaded the stock.
Nvidia had held shares in Arm since 2023, but wound down the size of its stake toward the end of 2024, according to past documents filed with the SEC.
When Arm debuted on the Nasdaq in 2023, the company's Chief Financial Officer Jason Child told CNBC that Nvidia had been among a group of strategic investors that collectively purchased $735 million of Arm shares. Apple, Google, Samsung and TSMC were also part of that cohort.
Arm Holdings CEO Rene Haas poses for a photo with members of leadership outside of the Nasdaq MarketSite on September 14, 2023 in New York City.
Michael M. Santiago | Getty Images
Nvidia's investment in the IPO came after its failed bid to buy the company outright for $40 billion, a deal that was initially agreed between Nvidia and Arm's then‑owner SoftBank back in 2020. The acquisition ultimately fell through in 2022 following regulatory hurdles on both sides of the Atlantic.
Arm — whose commercial partners include tech giants Meta, Google, Microsoft and Amazon — now has a market cap of around $135 billion, according to LSEG data.
Shares of Nvidia were 2 % higher in pre‑market trading, building on Tuesday's gains that saw the stock snap a two‑day losing streak.
Nvidia's exit from its stake in Arm does not spell the end of ties between the two companies, however. Following the breakdown of the takeover bid in 2022, Nvidia retained its 20‑year license with Arm, with Nvidia CEO Jensen Huang stating at the time that the company will “continue to support Arm as a proud licensee for decades to come.” Nvidia's Grace CPUs, which the company describes as “the foundation of next‑generation data centers,” are built on Arm technology.
Arm posted its fiscal third‑quarter earnings earlier this month, with sales rising 26 % year‑on‑year to $1.24 billion, above analysts' expectations. In a note following the earnings release, analysts at Morgan Stanley said Arm's report had demonstrated “AI project momentum” and confirmed high opex “which suggests the company is building for long‑term demand.” However, shares dropped in after‑hours trading following the earnings announcement, with analysts noting the slight beat on Arm's guidance. The stock is up 16 % so far this year.
Morgan Stanley is overweight Arm, with a price target of $135 on the stock — a premium of just over 6 % on Tuesday's closing price.
Nvidia remains a major investor in the tech space, with its SEC filings showing it held major stakes in Coreweave, Intel, Nebius, Nokia and Synopsys at the end of 2025. The $1 billion stake in Finnish telco Nokia that the company added to its portfolio was first announced in October.
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