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Nvidia (NVDA) stock on Friday slowed its recent slide into technology correction territory after receiving positive news from European regulators that cleared up competition concerns from recent acquisitions.
The artificial intelligence (AI) chip giant’s stock has fallen in nine of the past 11 trading sessions entering Friday since closing at $145.14 on Dec. 4, but by Friday afternoon it was down by around $145.14. It rose 2.5%. The stock is down about 10% in the period through Friday and about 12% from its last recorded closing price of $148.88 in early November.
On Friday, Nvidia received some positive news ahead of the Christmas holidays, as the European Union’s executive body, the European Commission, approved the company’s acquisition of Israeli software maker Run:AI Labs.
European Commission approves acquisition
Regulators said their review found that the acquisition would not have a negative impact on competition, as Run:AI is not a dominant player in the market and competing software can still be used on Nvidia products. said.
NVIDIA, which announced the acquisition in April, said it has had a “close working relationship” with Run:AI since 2020 and that the acquisition will allow customers to use its products more efficiently. The teams have not announced the financial terms of the deal, but reports say the deal has a price tag of about $700 million, according to Bloomberg.
