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Intel will possibly acquire NVIDIA

Reuters speculates Intel is set to acquire NVIDIA. The speculation arose when NVIDIA’s shares rose 8% to $30.62 on the NASDAQ. Approximately 20 million shares were traded according to Reuters. Intel representatives declined to comment while NVIDIA representatives were unavailable. Bill Lefkowitz, options strategist, vFinance Investments believes Intel will make the announcement tonight.

This is still speculation at the moment as NVIDIA was deemed too expensive to purchase.The article claims:

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.

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.


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this doesn't make much sense
By johnsonx on 10/4/2006 11:59:08 PM , Rating: 5
Like others have pointed out, Intel already makes graphics cores. If they wanted to compete with ATI/AMD and NVidia, it would cost them far less than $10 billion. Take the gpu and memory controller cores of their G965, double or quadruple everything to get enough pipes, shaders, and memory channels, shake off any limitations of being an integrated core, and they've got at the very least a decent mid-range chip. That's just the quickie start... a few more million and they can design a dedicated core from scratch. Way less than $10 billion.





RE: this doesn't make much sense
By yusuf on 10/5/2006 12:20:02 AM , Rating: 3
add to that that intel just recently signed an agreement with Imagination technology (makers of PowerVR) to license its technology, and even invest in the company.

http://xbitlabs.com/news/video/display/20061004055...


RE: this doesn't make much sense
By yusuf on 10/5/2006 1:11:57 AM , Rating: 3
and intel has been in the process of recruiting graphics engineers.

and one must consider what nvidia will gain out of this deal. it will definitely lose its market share in the AMD chipset department, its SLI will have to be opened up to work on other chipset if it wants to be used with AMD cpus. it won't gain in the intel chipset market, and if AMD keeps ATI graphics independent and intel keeps nvidia graphics independent (if it acquires it) then I don't see any gain for nvidia out of this deal at all.
being the sole independent high end chipset and graphics provider in the industry is a much more favorable position i think.


RE: this doesn't make much sense
By Thorburn on 10/5/2006 7:23:43 AM , Rating: 2
The big plus for Intel would be that discontinuing the NVIDIA AMD chipsets would REALLY hurt the Opteron, at least in the short term.
Near enough every board I can't think of for AMD 2 or 4S systems is NForce 4 Professional based.


RE: this doesn't make much sense
By DigitalFreak on 10/5/2006 8:29:38 AM , Rating: 2
Not really. Serverworks makes AMD chipsets. The HT-2000 and HT-1000, I believe. HP is using them on the new DL385 G2.


RE: this doesn't make much sense
By Thorburn on 10/7/2006 12:52:00 PM , Rating: 2
Hence I said nearly all :)

For workstations and the majority of servers I'd bet they are NForce based.


RE: this doesn't make much sense
By nerdye on 10/5/2006 12:28:48 AM , Rating: 4
You are certainly correct in the prospect of intel being easily capable of mid range to high end gpu's, but I doubt they could crank out anything more than a mid range gpu this moment. Give intel time, they are capable, buy nvida now for 1/12th of their total worth and gain roughly one 1/2 of the dedicated graphics market while NOT having to compete with nvida, that sounds like a good prospect for intel to me.


By doctor sam adams on 10/5/2006 9:19:38 AM , Rating: 3
Intel clearly lacks either the technology, expertise, or simple motivation of a dedicated graphics company. It has been saying for years that it wants to do "serious" graphics and has for years consistently churned out nothing but crap. It would likely have to spend a billion or more in R&D just to catch up to Nvidia, but buying it straight out would not only give it R&D but also knock a competitor out of the market. Worth 10 billion? No, but if there was another ATI to acquire, Intel might do it.


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