Nvidia Sells Arm Stake but Maintains Partnership
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Feb 18 2026
0mins
Source: Newsfilter
- Nvidia's Stake Sale: Nvidia's SEC filing on Tuesday revealed it has offloaded its stake in semiconductor firm Arm, yet this does not signify the end of their relationship, as Arm's shares rose 1.4% in premarket trading on Wednesday.
- Shareholding History: By the end of Q3, Nvidia held 1.1 million shares of Arm valued at $155.8 million, having maintained its stake since 2023 while gradually winding it down towards the end of 2024, indicating a strategic shift in its investment approach.
- Market Reaction: When Arm debuted on Nasdaq in 2023, Nvidia was part of a strategic investment group that collectively purchased $735 million in shares, and although its $40 billion acquisition bid failed due to regulatory hurdles, Nvidia retains a 20-year licensing agreement with Arm, continuing to support its technology.
- Financial Performance: Arm's recent earnings report showed a 26% year-on-year sales increase to $1.24 billion, exceeding analyst expectations, although shares fell in after-hours trading, with analysts noting high operating expenses suggest the company is preparing for long-term demand.
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Analyst Views on ARM
Wall Street analysts forecast ARM stock price to fall
24 Analyst Rating
19 Buy
4 Hold
1 Sell
Strong Buy
Current: 366.390
Low
120.00
Averages
160.58
High
201.00
Current: 366.390
Low
120.00
Averages
160.58
High
201.00
About ARM
Arm Holdings plc is a United Kingdom-based company. The Company is engaged in the design of central processing units (CPUs) and compute platforms for semiconductor chips. It develops and licenses CPU products and related technology. Its cloud and data center solutions include Arm AGI CPU and Arm Neoverse Compute Subsystems. The Arm Agentic Generalized Infrastructure (AGI) CPU is a production-ready system on a chip (SoC) for artificial intelligence (AI) data centers, delivering compute at scale. The Arm Neoverse Compute Subsystems (CSS) are pre-validated, performance-optimized compute platforms designed to accelerate infrastructure silicon development. The Company's primary markets include smartphone applications, processors and other chips used in mobile phones, consumer electronics, networking equipment, cloud and data center servers, automotive applications, Internet of Things (loT) and other embedded computing devices.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
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- Technological Advantages: AMD's advantages in core count, multithreading, and the x86 processor's software ecosystem enable it to benefit from both traditional software workloads and emerging agentic AI workloads, which is expected to further drive its stock price upward.
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- Confidence in Intel Investment: Son defended SoftBank's $2 billion investment in Intel, noting its value has multiplied, attributed to U.S. government support and partnerships with Apple and Nvidia, highlighting Intel's strategic importance.
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