Arm Holdings, the British semiconductor design firm that recently announced plans to develop its AI-specific chips, saw its stock price rise sharply before tumbling more than 3% today following news that NVIDIA had cut its investment.
On Friday, Arm shares fell 3.21% on the New York Stock Exchange, closing at $159.54.
The drop came after NVIDIA disclosed in a Securities and Exchange Commission (SEC) filing that it had halved its stake in Arm. Following the reduction, NVIDIA now holds 1.1 million Arm shares, valued at approximately $175 million at current prices.
Just a day earlier, Arm’s stock had surged 6.06% after the Financial Times (FT) reported that the company plans to unveil its first AI-specific chip later this year.
FT said Arm could introduce its in-house chip as early as this summer. Meta, Facebook’s parent company, has already placed an order as its first customer.
While this news had driven Arm’s stock up more than 6% the previous day, today’s revelation about NVIDIA’s reduced stake sent shares sliding by over 3%.