NVIDIA Shares Surge Amid Intel Takeover Speculation

Nvidia Corp shares climbed more than 8 percent on Wednesday amid speculation the graphics chipmaker could be acquired by Intel Corp., 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.

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.

Reuters - Nvidia shares surge amid takeover speculation

Intel currently manufactures integrated graphics chipsets, which are found in many Intel-based motherboards. However, it has not ventured into the world of discrete graphics cards, where NVIDIA and ATI have for years battled it out to see who can create the fastest-performing 3D accelerator card. If Intel were to pick up NVIDIA, it might eventually divide the computing world into two separate camps, offering what are essentially two different types of PCs. Whether or not the merger happens, there is a definite trend of consolidation among PC hardware companies. As in other maturing industries (such as passenger jet manufacturers) there may end up being one or two strong competitors that wind up surviving.

ArsTechnica - NVIDIA shares surge on Intel buyout rumors

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.

the Inquirer - Intel buys Nvidia!!!!! And other untrue things

Nevertheless, if the acquisition were to happen it would be interesting to see what Intel has in store for NVIDIA, as Intel holds the majority of the graphics market. Intel’s primary competitor, AMD, previously acquired ATI Technologies — NVIDIA’s primary competitor. The proposed AMD and ATI merger is nearing its final stages at the moment.

Daily Tech - Intel will possibly acquire NVIDIA