Yesterday—Wednesday October 4, 2006—NVIDIA Corporation shares rose 8 percent yesterday in speculation that they could soon be soon acquired by Intel, the world’s leading microprocessor chipmaker. At the time, a representative for NVIDIA could not be reached—but Intel had declined to comment on the rumors.

Intel’s main competitor AMD (Advanced Micro Devices, Inc.) has recently purchased ATI Technologies Inc. for $5.4 billion USD in order to compete with Intel who already manufactures their own graphics chips. The move for Intel would not be as appealing. Lately Intel has been investing money and resources into further developing their graphics chips by hiring specialized hardware engineers devoted in that field of study.

If Intel were to acquire NVIDIA Corp. the price tag would be that of almost double ATI. Analysts place figures at a little more than $10 billion USD. Analysts are also saying that an announcement from Intel or NVIDIA could be made any day now.

Intel having mounting competition from IBM and AMD’s newly acquired graphics division, and numerous:

psychological, emotional and financial variables at play

as Pacific Growth Equities analyst Satya Chillara puts it, Intel and NVIDIA may be a perfect match in the making—and a formidable team against AMD and ATI.

Source: Reuters

Technorati Tags: Intel, nVidia, graphics cards, ATI, AMD, acquisitions, business, chips

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