Nvidia has fully divested its remaining stake in Arm Holdings, selling 1.1 million shares valued at approximately $140 million in the fourth quarter of 2025, bringing its ownership to zero. This move closes a chapter that began with Nvidia’s failed $40 billion acquisition attempt in 2020, which was blocked by regulators. Despite exiting as a shareholder, Nvidia maintains important licensing agreements with Arm and continues to leverage Arm-based architectures in its expanding portfolio of AI-focused processors. The transaction aligns with Nvidia’s broader strategy to concentrate capital on core AI infrastructure and strategic partnerships amid the ongoing semiconductor boom.
Nvidia Completes Exit from Arm Holdings
Nvidia Corp. has officially exited its position in Arm Holdings Plc, marking the end of a direct equity link to the chip architecture firm it once pursued aggressively for acquisition. The sale, disclosed through a recent regulatory filing, involved unloading the final 1.1 million shares during the fourth quarter of 2025. At Arm’s closing price around the time of the report, those shares were worth roughly $140 million, a relatively modest position compared to Nvidia’s massive market capitalization but symbolically significant given the companies’ intertwined histories.
This divestment represents the culmination of a phased reduction in Nvidia’s Arm holdings. Earlier stages saw the stake trimmed progressively: from about 1.96 million shares valued near $280 million in 2024, down to 1.1 million by early 2025, before the complete sell-off. The transaction brings Nvidia’s ownership in Arm to zero, severing the last financial tie from an investment that originated in the wake of the abandoned takeover bid.
The backstory traces back to September 2020, when Nvidia announced its intention to acquire Arm from SoftBank Group in a blockbuster $40 billion deal. Arm’s energy-efficient processor designs power the majority of smartphones worldwide and were increasingly finding their way into servers, automotive systems, and other high-growth areas. Nvidia viewed the purchase as a way to bolster its dominance in graphics processing units (GPUs) and accelerate its push into central processing units (CPUs), data center computing, and artificial intelligence ecosystems. Control over Arm’s intellectual property would have provided Nvidia with unparalleled leverage in licensing and innovation across the semiconductor supply chain.
However, the deal faced intense scrutiny from global regulators concerned about competition, national security, and the potential for Nvidia to favor its own products over rivals. Antitrust authorities in the United States, United Kingdom, European Union, and China raised objections, with the UK’s Competition and Markets Authority playing a particularly vocal role in highlighting risks to innovation in the semiconductor industry. By early 2022, both parties abandoned the transaction, with Nvidia paying a $1.25 billion breakup fee to SoftBank.
Even after the failed acquisition, Nvidia retained a small equity stake in Arm, which went public again in 2023 via an initial public offering that valued the company highly amid surging demand for efficient AI compute. Arm’s architecture has become even more central to the industry, with its designs underpinning everything from mobile devices to cloud servers and emerging AI accelerators.
Nvidia’s decision to sell now comes as the company continues to thrive in the AI era. Its GPUs remain the go-to choice for training and running large language models and generative AI applications, driving record revenues and stock performance. The Arm stake sale appears part of a broader portfolio reallocation visible in Nvidia’s latest 13F filings, where the company has exited positions in several smaller or tangential AI-related investments while adding exposure to established infrastructure players like Intel and others that support data center buildouts.
Importantly, the equity exit does not disrupt Nvidia’s ongoing business relationship with Arm. Nvidia remains a major licensee of Arm technology and has integrated Arm-based cores into its product roadmap. This includes the development and deployment of Arm-based CPUs designed to complement its dominant GPU lineup. These processors target energy-efficient AI workloads in data centers, where power consumption and heat management are critical concerns.
The timing of the sale coincides with Nvidia deepening partnerships elsewhere in the ecosystem. For instance, recent announcements highlight expanded multiyear agreements to supply millions of current Blackwell and forthcoming Rubin AI chips—along with associated CPUs—to major hyperscalers. These deals underscore Nvidia’s focus on direct sales of its core technologies rather than passive equity stakes in foundational IP providers.
From a market perspective, Arm’s stock has shown resilience and growth since its relisting, benefiting from the same AI tailwinds propelling Nvidia. Arm’s licensing model generates steady royalty streams from a vast array of chipmakers, positioning it as a neutral player in an increasingly competitive landscape.
Nvidia’s complete divestment signals a pragmatic shift: after years of regulatory battles and strategic pivots, the company is streamlining its investments to prioritize areas where it holds clear leadership—namely, accelerated computing for AI. While the Arm chapter as a shareholder closes, the architectural collaboration endures, reflecting the interconnected nature of the modern semiconductor world.
Key Timeline of Nvidia-Arm Relationship
2020 : Nvidia announces $40 billion acquisition of Arm from SoftBank.
2022 : Deal terminated due to regulatory opposition; breakup fee paid.
2023 : Arm completes IPO; Nvidia retains initial stake post-IPO.
2024-2025 : Gradual reduction of stake from ~1.96 million to 1.1 million shares.
Q4 2025 : Final sale of 1.1 million shares (~$140 million), stake reduced to zero.
This development highlights the dynamic nature of the chip industry, where strategic relationships often outlast equity positions, and regulatory realities continue to shape billion-dollar ambitions.
Disclaimer: This is for informational purposes only and does not constitute investment advice, financial recommendations, or an endorsement of any security. Market conditions can change rapidly.
