Arm to bring in Nvidia as anchor investor just months before float

Arm is in talks to bring in Nvidia as an anchor investor just months before the chip designer’s New York listing.

Nvidia, the world’s most valuable semiconductor company, last year abandoned its planned £50billion acquisition of Arm after the deal was challenged by regulators.

The Silicon Valley chipmaker is one of several Arm partners, including Intel, that the UK-based firm hopes will take a long-term stake. 

Prospective investors are still negotiating with Arm over its valuation. Nvidia wants to come in at a price that would put Arm’s value at £27billion to £31billion, while Arm wants it to be closer to £62billion.

The aim of bringing in large anchor investors would be to support the stock as SoftBank, which bought Arm for £24billion in 2016, sells down its stake.

Private tech firms and their advisers are watching to see if the float can succeed after a year-long slump in new listings.