Analysts say NVIDIA’s acquisition of ARM: reckless, disastrous decision.

Multiple sources pointed out that After SoftBank released the signal to divest ARM, NVIDIA’s intention was the clearest, and has even become the only bidder in the high-level negotiation stage. NVIDIA’s initial offer was $32 billion ($223.1 billion), roughly flat or slightly higher than it would have been when SoftBank took arm in 2016, according to the report.

However, many analysts are not optimistic about the deal, which is enough to set off an “earthquake” in the semiconductor industry.

“The merger is a disaster,” Kevin Krewell, chief analyst at Tirias Research, was quoted as saying by EETimes. ARM’s customers will turn heavily to RISC-V.” Bolaji Ojo called NVIDIA’s move “reckless.”

Mike Demler, an analyst at Linley Group, said the deal was a tough deal, considering government reviews and customer reactions. The so-called government review, which is about getting a pass from antitrust authorities in major countries, says Qualcomm’s bid for NXP is a lesson.

Ojo also points out that NVIDIA may be eager to prove itself because it is well-paid and has overtaken Intel in market capitalisation, but that the company is usually robust in style since its inception in 1993 and does not rush to success.

Analysts say NVIDIA's acquisition of ARM: reckless, disastrous decision.