Nvidia Corp. completed the sale of its remaining 1.1 million shares of Arm Holdings plc on February 17, 2026, receiving approximately $140 million based on Arm’s closing price that day. The transaction ends Nvidia’s equity stake in the British semiconductor IP firm while preserving a 20‑year license that allows Nvidia to continue using Arm’s architecture in its own chip designs.
The divestiture follows Nvidia’s aborted $40 billion acquisition attempt of Arm in 2022, which collapsed amid regulatory hurdles. By shedding the equity position, Nvidia frees capital that can be redirected toward its rapidly expanding AI chip business, which demands significant investment to sustain growth and maintain competitive advantage.
Arm’s most recent earnings, released February 4, 2026, showed total revenue of $1.24 billion, up 26 % year‑over‑year, marking the fourth consecutive quarter above a billion dollars. Licensing revenue of $505 million fell short of the $520 million estimate, while royalty revenue reached a record $737 million, up 27 % year‑over‑year. CFO Jason Child said, "The strength of customer demand we are seeing today, combined with a growing base of long‑duration contracts at structurally higher royalty rates, provides increasing confidence in our future revenue profile." CEO Rene Haas added, "We have delivered another strong quarter. Total revenue grew 26% year‑on‑year to a record $1.24 billion, marking our fourth consecutive quarter above a billion dollars. Royalty revenue exceeded our expectations, growing 27% year‑on‑year to a record $737 million."
Investors reassessed Arm’s ownership structure and the potential impact on its capital base following the announcement. The move also signals a shift in Nvidia’s strategic focus toward its own chip development rather than equity participation in external IP providers.
The transaction underscores Nvidia’s broader capital‑allocation strategy, which has included divesting stakes in Applied Digital, WeRide, and Recursion Pharmaceuticals while investing in Intel, Nokia, and Synopsys. For Arm, the sale reinforces its independence and positions it to pursue growth in data‑center and AI segments, where it has seen triple‑digit year‑over‑year revenue increases.
In summary, Nvidia’s sale of its remaining Arm shares marks a decisive step in concentrating resources on its core AI and GPU businesses, while Arm’s continued independence and strong financial performance suggest a robust trajectory for its IP‑based model.
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