Nvidia has quietly exited its entire stake in Arm Holdings, according to fresh SEC filings that surfaced Wednesday. The move marks a stark reversal for the graphics chip giant, which just five years ago tried to acquire the British chip designer for $40 billion in what would have been the semiconductor industry's biggest deal ever. The divestment comes as Nvidia reshuffles its portfolio amid explosive AI demand and mounting pressure to streamline its strategic bets.
Nvidia just closed the book on one of tech's most dramatic acquisition sagas. SEC filings released Wednesday confirm the AI chip leader has fully exited its stake in Arm Holdings, the British semiconductor designer whose technology powers nearly every smartphone on the planet. The disclosure marks the final chapter in a relationship that once promised to reshape the entire chip industry.
Arm's stock actually climbed in premarket trading following the news, a counterintuitive reaction that speaks volumes about how the market now views both companies. Investors seem relieved that Arm can chart its own course without the shadow of Nvidia's influence, while Nvidia gets to redeploy capital into areas more directly aligned with its AI dominance.
The backstory here is wild. Back in September 2020, Nvidia announced plans to acquire Arm from SoftBank for $40 billion, a deal that would have given the GPU maker control over the fundamental architecture used in billions of devices. But regulators worldwide saw red flags. The Federal Trade Commission sued to block it, citing competition concerns. The UK's antitrust watchdog piled on. By February 2022, the deal was officially dead.
What's telling is that Nvidia held onto its Arm shares even after the acquisition collapsed. The company maintained what sources described as a "strategic position" through 2024 and into 2025, presumably betting on Arm's growing relevance in the data center market. But something changed. According to the latest 13F filing, Nvidia liquidated the entire position sometime in Q4 2025.
Timing matters here. Nvidia's AI chip business has exploded beyond anyone's wildest projections, with its H100 and upcoming Blackwell GPUs commanding premium prices and months-long waitlists. The company's market cap has swelled past $2 trillion as hyperscalers like , , and race to build out AI infrastructure. In that context, holding a passive stake in a chip architecture company starts to look like a distraction.
