Nvidia has warned for the first time that it is at risk of losing a $1.25bn (£950m) downpayment for the British microchip designer Arm if regulators persist in holding up the deal.
Last December, I compared two of the market's hottest semiconductor stocks: Nvidia (NASDAQ: NVDA) and Advanced Micro Devices (NASDAQ: AMD). At the time, I said AMD was a better buy than Nvidia because I believed it was better insulated from macro headwinds, it would benefit from the arrivals of the new PlayStation 5 and Xbox Series consoles, and it would continue to grow its market share against Intel (NASDAQ: INTC).
Of course, that particular problem has actually been a tailwind for chipmakers like Nvidia (NASDAQ: NVDA). In fact, Nvidia's share price has skyrocketed 150% since the beginning of 2021 and 455% since the beginning of 2020. Nvidia specializes in accelerated computing.