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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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By Mumak on 10/5/2006 8:38:06 AM , Rating: 2
I don't see a reason for Intel to buy nV. Intel is capable to create powerful graphics cores - the reason why the don't do this, is because they have it integrated inside the MCH. They need to keep it small and power-effective. I guess if they want, they would be able to produce discrete powerful graphics w/o nV. The only interesting area are the software/driver guys, that I believe are much better @ nV. But is that worth the price?

RE: Why??
By Calin on 10/6/2006 4:19:32 AM , Rating: 2
In the times when nVidia and ATI had a 6-months cycle between versions, they had two teams working on different generations (a team finish the GeForce3, starts working on GeForce5).
They probably do the same now, which means a team that worked together for a long time is able to churn a new class of graphic processors in about 18 months.
There is no way in hell Intel could release a powerful graphic core in less than those 18 months, especially starting from an graphic architecture with half a pair (like the one integrated in chipsets).
You could add pipelines and multiply the width of the graphics engine only up to a point (integrated video from NVidia and ATI has just to pixel pipelines, unlike the low-end graphic cards which have four pipelines).
Is Intel able to enter now in the low-cost graphics sector? Certainly. Is it able to enter in budget/mid-range gaming sector? In a year or so of preparations, probably. What about high performance gaming? Not at those times, but maybe the second generation of the mid-range could go there. However, you are looking at a three years wait until that, probably two years from the launch of their first mid-range gaming discrete graphic card.

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