Nvidia is eyeing to acquire SoftBank's Arm

In a record breaking deal into semiconductor, all eyes are on the ARM semiconductor, as Apple is the largest customer of ARM processor apart from many.

Arm’s technology could connect chips in everything from Apple Inc. devices to connected appliances. It’s becoming more valuable as the company pushes for its architecture to be used in more smart cars, data centers and networking gear. Nvidia is looking to acquire SoftBank Groups' chip designer Arm Holdings that could potentially become the biggest-ever semiconductor deal, reports said.

Nvidia, the world's largest graphics chip maker, had approached Arm in the recent weeks about the potential deal. SoftBank is looking to exit part or all of its stake in the business, which it acquired for $32 billion. The company could be worth $44 billion if it pursues an initial public offering next year, a valuation that may rise to $68 billion by 2025, according to New Street Research LLP.

Shares of Nvidia have surged more than twentyfold over the past five years, giving it a market value of $257 billion at Wednesday’s close. The Santa Clara, California-based company has segued its dominance of graphics chips used by gamers into new areas such as data center AI processing. It’s also taken a foothold in the nascent market for systems that will run self-driving cars.

Those moves have made Nvidia a bigger threat to a broader range of companies, including Intel Corp., Qualcomm Inc. and Advanced Micro Devices Inc. -- all of which license Arm’s technology. Earlier in July, Nvidia briefly surpassed Intel in market value.