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Nvidia CEO Jensen Huang told CNBC on Thursday that he was confident in the company’s growth, even if its potential successful acquisition of British chip designer Arm did not happen.
“Nvidia is going to be huge no matter what,” Huang said on “Mad Money,” in response to a question from Jim Cramer, the show’s host. Cramer asked the executive how investors should think about Nvidia in the long term, while its $ 40 billion deal to buy Arm, owned by Softbank, remained on hold.
Many companies in the tech landscape, including California chipmaker Qualcomm and Microsoft, have reportedly told the Federal Trade Commission that they fear the Nvidia-Arm deal could hurt competition. The FTC, the US antitrust regulator, has opened a “full investigation” into the acquisition, Bloomberg reported earlier this month.
Nvidia, known for its gaming graphics chips, first announced the deal in September. Shortly after its release, Cramer told “Mad Money” viewers that if “Nvidia can shut down on Arm Holdings, the title will be unstoppable even after its magnificent multi-year run.”
Nvidia stock has risen 103% in the past 12 months, compared to a 22.4% gain for the S&P 500. In the past five years, shares of the chipmaker have risen nearly 1,600% .
Huang said Thursday that Nvidia’s chips remain at the heart of many disruptive technologies, keeping its centuries-old tailwinds intact. A day earlier, the company reported quarterly sales of $ 5 billion, which represented 61% year-over-year growth. Both revenues and profits exceeded Wall Street expectations.
“The growth opportunity that lies ahead for artificial intelligence, autonomous vehicles, manufacturing, industrial robotics, 5G edge, these applications are going to make us a very big company,” said Huang, who founded Nvidia. in California in 1993. “I think our growth trajectory is very exciting. … We expect this to be a great year of growth for the data centers, and all of this is independent of Arm, ”added Huang.
At the same time, Huang also sought to defend Nvidia’s desire to buy Arm, which is known to design the chip architecture used in most of the world’s mobile phones.
“We’re going to be able to inject so much exciting scale and engineering into Arm to accelerate their roadmap, which the ecosystem is going to love,” he said, adding, “We’re going to wrap this up. agreement. I am very confident of it. ”
Last year, Nvidia completed a $ 7 billion acquisition of chipmaker Mellanox Technologies. It took more than 13 months for Chinese regulators to review the deal.
Shares of Nvidia closed more than 8% lower on Thursday, which turned out to be a tough session for many tech companies as investors digested the surge in bond yields.
Disclosure: Cramer Charitable Trust owns shares of Nvidia.
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