Intel to purchase Nvidia??

[disciple]

BOSTON, Oct 4 (Reuters) - 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

http://yahoo.reuters.com/news/articlehybrid.aspx?storyID=urn:newsml:reuters.com:20061004:MTFH14153_2006-10-04_18-57-21_N04413247&type=comktNews&rpc=44

[W1nTry]

Whilst this is a logical type step seeing as intel is investing waddles of cash in the discrete graphics market since the DAAMIT merger, I would also say that in light of the 10+ thousand job cuts to better their bottom line, putting out BILLIONS which they would undoubtedly have to would be a bit much. Let's face it, Nvidia is larger than ATI. If AMD had to flog 5.4Billion to ATI, then Intel would prolly have to flog upwards of 8 billion dollars to aquire them. And to put that into perspective, that's intels's entire revenues for a quarter (if memory serves me right). IT would be a HELLA kick in the stock holders pants the way I see it. Secondly  JUST as ATI stockholders aren't particularly happy with the lost revenues from loss of intel sales, I doube Nvidia stock holders will be happy with the loss of Nvidia AMD chipset sales which lets be honest makes up the majority of their chipset sales.

If this is to work, this is how I figure. It'll be a merger over time with say a majority share being taken up front with the rest to span out a 1-2 year period. Nvidia Chipset dept would be absorbed into intel's and Nvidia would be relegated to strict video for the while. Whilst working with Intel to produce GPU on CPU tech. I not saying it can't be true, just that wallstreet tends to make about as much sense in the tech industry as headless chickens running around looking for a grain of salt on a beach. The way I see it, wall st. Reall misleads itself, otherwise how can you explain the .com fallout. Men sell worthless .com companies that did things like sell afro combs (note this is an exageration, but not as far from the truth as you may think) for MILLIONS. Speculation is 1 thing, time will tell now.

[W1nTry]

Wait I have more, an article off a site that kinda shares my view:

Intel buys Nvidia!!!!!

And other untrue things


By Charlie Demerjian: Thursday 05 October 2006, 09:04

 THE HOT RUMOUR of yesterday was that Intel is buying Nvidia, some said last night, other said $37.
Digging in, no one had anything more concrete than a friend of a friend of my uncle's barber's nephew heard something.

The "deal" makes no sense to me, from products to antitrust to price, and there is little to recommend it. On top of that, the personalities and cultures involved go together like rabid weasels and sensitive body parts, nothing you would like in the same rough area of space at the same time.

The final nail in this particular coffin was people who should be on edge, working late and twitching when the phone rang were not doing any of those things. It was calm and peaceful in Silicon Valley yesterday. My guess it thumbs down on this one, but every time I say something like that, it happens. Whatever the case, I vote no here. And no, I am not wearing another rabbit outfit. µ

[Prowl]

Intel should have countered amd and took ati, at this point nvidia doesn't look as good

[Crixx_Creww]

steups @ nvidia doesnt look as hood hush yuh meff yuh know yuh talkin biased nonsense.


What wintry is saying is right. Nvidia would be a very very large buy for intel.
And i dont think they can afford Nvidia RIGHT NOW. after revenues come sliding in from this quarter and next quarter with kentsfield sales as well, then maybe it would be a possibility.

Its also a LOGICAL step as winny also said.

If amd get ati, then duh intel should get nvidia. But having two giants like that roll around could honestly flat line daamit. I mean, the share production capability of chipzilla and graphzilla combined would be insane.
Wouldnt be sicko though to have a conroe or kentsfield in your next nvidia card though? lol

[TrinireturnofGamez]

would be a great buy , and it would  make for very uber graphics cards.  Intel could be making 45nm geforce 8s when AMD is now pushing 65nm , and be making them in larger quantities . It would be good in the short term ,as we get much more competitive products , intel integ that can actually run games etc. In the long term if intel keeps ahead of ATI significantly , it will bring down the company as a high end graphics manufacturer.

[TriniXaeno]

well while you all say that ATI is smaller than Nvidia.

You have to keep in mind that Intel is bigger than AMD.

So let us say:

AMD worth 10 Billion buys ATI for 5.4Billion

then

Intel worth 50 Billion buys Nvidia for 10 Billion.

That is not out of proportion is it?

I would have doubted this if it were not for the amazing shocker of the ATI AMD and Compaq HP buy out.

Goes to show that anything is possible.