Benzinga | Jan 26, 2022 01:47PM EST

BofA Hails Nvidia's Dumping Of Arm Takeover

* NVIDIA Corp's (NASDAQ:NVDA) reported plan of not proceeding with the acquisition of semiconductor licensing company Arm, a move that would be a "net positive" for the chip company, Bank of America said.

* Vivek Arya, who reiterated a Buy on the stock, said that the scenario would benefit Nvidia, given that the deal faces "considerable regulatory pushbacks" worldwide, including in the U.S., U.K., and China.

* Related Content: Nvidia Quietly Looks To Dump Its Arm Ambitions

* In addition, Nvidia does not need to own Arm to use its tech to expand in the data center, and Arm's smartphone sales are "highly growth dilutive" and not worth the $55 billion - $60 billion that the cash and stock value equate to.

* Price Action: NVDA shares traded higher by 5.59% at $235.72 on the last check Wednesday.