Nvidia Corp. announced on February 20, 2026 that it had completed the sale of its remaining 1.1 million shares in ARM Holdings, a transaction valued at roughly $140 million. The divestiture marks the final exit from an equity position that Nvidia had held since its 2020 attempt to acquire the chip‑design firm, which was ultimately abandoned in February 2022 after regulatory opposition.
The sale reflects a deliberate shift in Nvidia’s capital allocation strategy. By divesting its equity stake, Nvidia frees $140 million that can be deployed toward high‑growth AI initiatives, such as the Blackwell platform and other AI‑centric investments. The company continues to license and use ARM architecture in its product portfolio, including the Grace and Vera CPUs that power its AI supercomputers, underscoring that the divestiture is a financial realignment rather than a strategic disengagement from ARM technology.
Nvidia’s Q4 fiscal 2025 results, released in February 2025, provide context for the divestiture. The company reported revenue of $39.3 billion, up 78% year‑over‑year, and GAAP earnings per diluted share of $0.89, beating analyst expectations by $0.05 per share. The strong earnings were driven by robust demand for AI infrastructure, particularly in data‑center and cloud segments, and by pricing power that offset modest cost inflation.
Beyond the ARM stake, Nvidia has maintained a diversified investment portfolio. In late January 2025, the company invested $2 billion in CoreWeave, and it holds significant stakes in Intel ($5 billion) and Synopsys ($2 billion). These investments align with Nvidia’s broader strategy to support complementary technologies that enhance its AI ecosystem.
Arm Holdings, now an independent public company following its September 2023 IPO, reported Q3 revenue of $1.24 billion. The divestiture removes a potential conflict of interest and allows Arm to pursue licensing relationships with hyperscalers and other chipmakers without Nvidia’s influence, reinforcing its independent trajectory.
The $140 million freed by the sale positions Nvidia to accelerate capital deployment in AI startups, data‑center expansions, and networking initiatives. The move also signals to investors that Nvidia is prioritizing its core revenue drivers while maintaining a strategic partnership with ARM through licensing agreements. This realignment is expected to support Nvidia’s continued leadership in AI computing and to enhance its long‑term growth prospects.
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