Nvidia Stock: $40 Billion Deal

Stocks rebounded from a tumultuous start to September on Monday, with all three major U.S. indices rising more than 1%.

Markets had pulled back from a rip-roaring rally in the early part of the month as volatility picked back up before the presidential election and another round of stimulus failed to gain traction on Capitol Hill.

The Dow Jones Industrial Average rose 327 points, or 1.2%, to finish at 27,993.

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Nvidia putting its valuation to work. America’s most valuable chipmaker, Nvidia (ticker: NVDA), made a bold move to expand its footprint, moving to acquire the U.K.-based, Softbank-funded chip design company Arm for up to $40 billion, a record-setting amount in the semiconductor industry.

The move, which is still subject to regulatory approval and could face opposition, will be financed to the tune of $21.5 billion with NVDA stock, which is up more than 100% year to date. Any executive team that feels its company stock is overvalued is wise to use shares as currency in M&A deals.

Nvidia hopes its acquisition will accelerate its so-called “edge” computing, where Nvidia’s chips, used heavily in artificial intelligence (AI), can team with Arm’s exposure to mobile-chip design, allowing AI computations to be done on small local machines instead of the cloud.

Last chapter in TikTok saga? It appears enterprise software giant Oracle ( ORCL) has won the bidding war for popular social media video app TikTok, as Microsoft ( MSFT) announced over the weekend that its bid was rejected. In an odd partnership, Microsoft had teamed up with Walmart ( WMT) in the bidding process.

The deal, which may just encompass the U.S. operations of TikTok, has been a spark plug of international tensions and will face scrutiny from both U.S. and Chinese officials. President Donald Trump has threatened to ban the app in the U.S. based on national security concerns if its Beijing-based owner, ByteDance, doesn’t sell to a U.S. suitor.

More details are likely in the coming days, but early numbers had the roughly $175 billion Oracle valuing TikTok’s U.S. operations around $25 billion. ORCL ended on the day up by more than 4%.

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Nvidia Stock: $40 Billion Deal originally appeared on usnews.com

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