Since the deal was called off, Nvidia has maintained its position as the leading AI chipmaker with a surging stock valuation, while Arm went public and has a forward earnings multiple more than double Nvidia's. Khan argued that the companies' trajectories post-action demonstrate how organic growth and competition can drive firms to innovate in ways that benefit both the business and the public. Despite the blocked merger, Nvidia's value has nearly tripled, and Arm's stock has more than doubled since it went public in August 2023.
Key takeaways:
- Federal Trade Commission Chair Lina Khan cited the blocked merger of Nvidia and Arm as an example of how such actions can lead to increased innovation, with both companies forced to create new products after the deal was called off due to regulatory challenges.
- Khan suggested that the blocked Nvidia deal, which would have been the largest semiconductor chip merger in history, is an example of successful antitrust action that doesn't prevent companies from pursuing financial success or embracing new technologies.
- Since the deal was called off, Nvidia has maintained its leading position in AI chips with a surging stock valuation, while Arm went public and has a forward earnings multiple more than double Nvidia's.
- Despite the blocked merger, Nvidia's value has nearly tripled, making it the third-most valuable U.S. company, while Arm's stock has more than doubled since it went public in August 2023.