Arm shares rose more than 1% in premarket trading on Wednesday (February 18) following the disclosure that Nvidia has sold its entire stake in the British semiconductor firm, signaling investor confidence in Arm’s ability to grow independently.
The move marks a dramatic reversal for Nvidia, which attempted a $40 billion acquisition of Arm in 2021—the largest semiconductor deal in history—which ultimately collapsed. Analysts suggest Nvidia’s exit removes uncertainty around Arm’s strategic direction while freeing the graphics chip giant to redeploy capital into AI-focused initiatives.
Financial details of the sale
At the end of Q3 2025, Nvidia held 1.1 million shares of Arm valued at $155.8 million. SEC filings confirm that the company has sold all of these shares. Arm remains majority-owned by Japan’s SoftBank.
Nvidia’s strategic outlook
While Nvidia has not disclosed the use of proceeds from the sale, the company has been actively investing in AI startups, building out data centers, and exploring acquisitions in the networking space. Analysts expect the freed capital could support these initiatives without diluting shareholders or taking on debt.
AI partnerships boost Nvidia stock
Nvidia’s stock climbed 2.3% after Meta Platforms announced a long-term deal to use millions of Nvidia chips and other equipment for its AI data centers. CEO Jensen Huang highlighted Nvidia’s dominant position in AI computing, stating, “No one deploys AI at Meta’s scale.”
Impact on US markets
Nvidia’s performance was also a major driver of the US stock market on Wednesday. The S&P 500 rose 0.9%, nearing its all-time high, the Dow Jones Industrial Average gained 308 points (0.6%), and the Nasdaq Composite advanced 1.3%.
