Intel to buy Nvidia????

[stinger608]

holy crap, here is the news story:


Reuters reports that Nvidia Corp. (NVDA.O: Quote, Profile, Research) shares climbed more than 8 percent on Wednesday amid speculation the graphics chipmaker could be acquired by Intel Corp. (INTC.O: Quote, Profile, Research), traders said.

A spokeswoman for Intel, the world's No. 1 chipmaker, declined comment, saying her company doesn't comment on market speculation. A spokeswoman for Nvidia could not be reached.

Nvidia shares rose $2.32 to $30.62 in afternoon Nasdaq trade. Some 20 million shares changed hands, about double the three-month daily average.

Investors have been speculating that Nvidia might be acquired since July, when Advanced Micro Devices Inc. (AMD.N: Quote, Profile, Research) agreed to buy Nvidia rival ATI Technologies Inc. (ATYT.OQ: Quote, Profile, Research) for $5.4 billion. Rumors of such a transaction resurfaced on Wednesday, spreading quickly across Wall Street trading desks, according to three options market participants.

"There is speculation that Intel will make an acquisition announcement tonight," said Bill Lefkowitz, options strategist at brokerage firm vFinance Investments in New York.

Investors bought up call options contracts, hoping to profit from a surge in Nvidia shares if the company is acquired at a premium to its current share price.

Before noon more than 33,500 Nvidia calls were traded in the U.S. options market, more than twice their normal volume over the last 20 trading days, according to market research firm Track Data.

Some observers said that they doubt Intel would buy Nvidia because it's too expensive. The company has a stock market capitalization of about $10 billion, which means it would demand a far higher price than what AMD is paying for ATI.

AMD's purchase of ATI allows the Intel rival to enter a new market as it currently doesn't make graphics chips.

An Intel acquisition of Nvidia wouldn't have that appeal because Intel already sells graphics chips, an area where it has been expanding by hiring engineers specialized in that field, said Pacific Growth Equities analyst Satya Chillara. Additionally, Nvidia Chief Executive Jen-Hsun Huang isn't ready to hand over control of the company, Chillara said.

"There are psychological, emotional and financial variables at play," he added.

[polobunny]

That night was last night though, nothing happened.
Nvidia is apparently asking for as much as 3 times what ATI was asking, so I wouldn't see Intel buying it anytime soon.

[jph1589]

Originally Posted by polobunny

That night was last night though, nothing happened.
Nvidia is apparently asking for as much as 3 times what ATI was asking, so I wouldn't see Intel buying it anytime soon.

Thank goodness!! That would be a very bad thing for nvidia. IMO!

[Capper]

Originally Posted by polobunny

That night was last night though, nothing happened.
Nvidia is apparently asking for as much as 3 times what ATI was asking, so I wouldn't see Intel buying it anytime soon.

They are leveraging....INTEL has to keep pace with NVIDIA, and can't even appear to be shown up. Its no secret that INTEL wants a share of the graphics market, and NVIDIA is the top dog.....I see it happening, just not so quick and easy...there's going to be a LOT of haggling over money

[yurimxpxman]

It'll happen sooner or later... just wait. Crap. This means I'd have to buy an Intel chip to get SLI! dangit!

I think it'd be best if they'd stay as separate companies (for the reason I just said). It'd be nice to be able to choose each technology separately, without all the politics.

[polobunny]

Originally Posted by Capper

They are leveraging....INTEL has to keep pace with NVIDIA, and can't even appear to be shown up. Its no secret that INTEL wants a share of the graphics market, and NVIDIA is the top dog.....I see it happening, just not so quick and easy...there's going to be a LOT of haggling over money

Yeah, anytime soon. :P
I'm scared it will happen someday, because as yurimxpxman introdced, i'd like to have the functions that suits my "type" of user without having to make compromises.
Every technology somehow brings new restrictions the way it is now. You need a certain chipset, a certain video card (or two of them), a certain OS with a certain CPU to get that certain function you want. =/

[gvblake22]

I am not excited about this. All these big mergers just make the market that much closer to being extremely lopsided and monopolistic. Competition is about the only thing that will keep the market fair (because we all know that an honest concience isn't something that is prevelant in big business today).

[Jokerswild]

After this is it going to be EA, Intel and Nvidia all in one company? This seems to be the way the industry is headed. Oh and will Microsoft buy them then? This seems to be a trend in all businesses since the eighties. Eventually there will just be a few mega corporations. Very bad for the consumer I think.

[polobunny]

Originally Posted by Jokerswild

[...] Very bad for the consumer I think.

Could not agree more. While it will hopefully prop some good technology, like Blake said competition is the only thing that keeps the market "fairly" priced.

[Lead Head]

I don't think this could legally happen...Intel owns most of the graphics market(because of dells and HPs with integrated graphics) and most of the chipset market(dells and HPs etc..again). Buying nVidia would set them over the edge into a monopoly. The last thing a company wants is a trust suit