NVIDIA Corporation (NASDAQ: NVDA) stock rose during pre-market trading Thursday following reports of its acquisition deal with Shoreline.io, a software startup.
NVIDIA has reportedly finalized an agreement to acquire Shoreline.io, a California-based software startup, for an estimated $100 million.
Anurag Gupta, a former Amazon Web Services executive, founded Shoreline.io in 2019. The company specializes in developing software that identifies and automates the resolution of issues and incidents within computer systems.
Nvidia, a major player in developing computer systems crucial for creating and running AI software, continues to acquire startups to enhance its technology portfolio. However, the chipmaker typically does not disclose acquisitions that aren’t considered material to its operations.
The acquisition of Shoreline.io aligns with NVIDIA’s strategy to broaden its portfolio with enhanced software, networking, and pre-trained AI models. This move aims to democratize technology adoption and help NVIDIA diversify revenue sources, reducing its dependency on cloud computing giants like Microsoft (NASDAQ: MSFT) and Amazon (NASDAQ: AMZN).
Shoreline has previously raised approximately $57 million in funding and counts investors such as Dawn Capital, Insight Partners, and Canvas Ventures among its backers.
The acquisition comes amidst NVIDIA’s recent milestone of becoming the world’s most valuable public company, surpassing industry giants like Microsoft and Apple. Nvidia has a market capitalization of 3.33 trillion.
Meanwhile, Chief Market Strategist at F.L. Putnam Investment Management Ellen Hazen praised NVIDIA’s recent financial performance and growth, suggesting the onset of a significant era with NVIDIA at the forefront. She emphasized the company’s revenue and earnings growth, drawing parallels to when Apple overtook Exxon as the largest company in America by market capitalization in 2011.
NVIDIA (NASDAQ: NVDA) Stock Movement
As of 09:27 a.m. (Eastern Time) Thursday, NVDA stock traded at $139.98, marking a 3.25% increase compared to the previous trading session.
Edward Cooke is a financial analyst, freelance writer, and editor. He has six years of experience in financial journalism. He has an in-depth understanding of equities markets, tracking major indices and providing real-time analysis on stock price movements, corporate earnings, and market sentiment.
