Stock Alert: NVIDIA Up 8% On $40 Bln Acquisition Of Arm Holdings

(RTTNews) - Shares of NVIDIA Corp. (NVDA) are currently gaining nearly 8% on Monday morning after the chip maker announced its plans to buy chip design company Arm Holdings for $40 billion.

NVDA is currently trading at $523.24, up $36.67 or 7.54%, on the Nasdaq.

NVIDIA will buy Arm from existing owner SoftBank, which bought the company for $32 billion in 2016. The deal does not include Arm's IoT Services Group.

The company expects the acquisition to add to its earnings immediately.

NVIDIA intends to finance the cash portion of the transaction with balance sheet cash. The deal is expected to close in 18 months and will require regulatory and antitrust approvals in the U.S., the United Kingdom where Arm is headquartered, China, and the European Union.