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NVIDIA shares surge on Intel buyout rumors


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#1 Slimy

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Posted 05 October 2006 - 00:46

Shares in NVIDIA Corporation surged nearly 8 percent today amid speculation that the graphics card company was about to be purchased by chip giant Intel. The stock rose $2.32 to hit $30.62 in afternoon trading on the NASDAQ exchange. An Intel spokeswoman declined to comment on the rumors, and there has been no statement from NVIDIA on the subject.

If the rumor is true, the announcement could come quickly. "There is speculation that Intel will make an acquisition announcement tonight," Bill Lefkowitz, an options strategist at vFinance Investments, told Reuters. However, not every analyst shares this belief. Some feel that NVIDIA's market cap of $10 billion would represent too high a price for Intel, which is currently on a cost-cutting spree.

The deal, if it happens, would mirror the purchase of rival graphics card maker ATI by chipmaker AMD. That acquisition represented a significantly lower cost outlay, as ATI's market capitalization was only $4.2 billion at the time. Still, AMD managed to swing the deal, a combination of cash and stock, while only having a market cap slightly more than double ATI's. Intel's valuation currently stands at an impressive $120 billion.

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.

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#2 pyehac

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Posted 05 October 2006 - 00:50

If this happens, then will Intel be the #1 graphics chip maker?

#3 Allan®

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Posted 05 October 2006 - 01:38

$120 billion ?!? :blink: :| :o

#4 Lasker

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Posted 05 October 2006 - 01:42

this could be even more strong than ATI/AMD

#5 NienorGT

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Posted 05 October 2006 - 01:51

Nice... Nice Nice... I'm kinda happy in a certain point since Intel + Nvidia fellow what I think like the best combo.
But this will now officially brake the market. AMD + ATi or Intel + nVIDIA, no other choice. So if you like ATi + Intel, forget it.
this mean if the G80 is weaker than the R600... we will not like this... Getting the best CPU with the weaker GFX card is not a good thing...

#6 Tech Star

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Posted 05 October 2006 - 01:52

YOU DO NOT KNOW HOW MUCH I AM JUMPING UP AND DOWN!!!!!!!!!! :D That would be SOOOOOOOOOOOOOOOOOOOOOOOOOOOO cool! :D

#7 Jon 5

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Posted 05 October 2006 - 01:58

But wouldn't this hurt Intel's own onboard gfx cards? Maybe not idk...

#8 macrosslover

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Posted 05 October 2006 - 01:58

$120 billion ?!? :blink: :| :o

I think MS is at like $300 billion or something or somewhere up there. I forget which company has the highest value..GE?? but either way $120 billion isn't really that much. and to the previous poster Intel alreayd is the #1 supplier of graphic chips, boards whatever it is, they are #1 in something. I really don't see the need for them to buy nvidia, they have nothing to gain from it. If intel really wanted to they could develop a graphics card design just as effective as anything ati or nvidia could come out with but why do it when you have 2 companies that already do.

#9 Jacky L.

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Posted 05 October 2006 - 02:01

I LIKE IT, good news

#10 halcyoncmdr

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Posted 05 October 2006 - 02:01

See, I like AMD and nVidia :p oh well, I don't think it will become a complete shut-out ever. But this is still the largest monopoly country on Earth.

#11 *RedBull*

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Posted 05 October 2006 - 02:08

I like Amd and Nvidia too. It's a shame they didn't combine. Oh well...

#12 Sartoris

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Posted 05 October 2006 - 02:12

Nice... Nice Nice... I'm kinda happy in a certain point since Intel + Nvidia fellow what I think like the best combo.
But this will now officially brake the market. AMD + ATi or Intel + nVIDIA, no other choice. So if you like ATi + Intel, forget it.
this mean if the G80 is weaker than the R600... we will not like this... Getting the best CPU with the weaker GFX card is not a good thing...


This is why it was a bad idea for AMD to buy ATI. I can only hope that they keep their product lines separate and do not try anything that would make their video cards work better with their CPU's only.

#13 hagjohn

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Posted 05 October 2006 - 02:13

Nice... Nice Nice... I'm kinda happy in a certain point since Intel + Nvidia fellow what I think like the best combo.
But this will now officially brake the market. AMD + ATi or Intel + nVIDIA, no other choice. So if you like ATi + Intel, forget it.
this mean if the G80 is weaker than the R600... we will not like this... Getting the best CPU with the weaker GFX card is not a good thing...


I agree... I think if we end up getting only ATI with an AMD processor and nVIDIA with Intel, we just may end up losing as consumers.

#14 the godfather

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Posted 05 October 2006 - 02:15

will Intel still sell seperate nVidia cards? yes, will Amd still sell seperate ATI cards? yes.

buy an amd processor, and an nvidia card, put into the same machine bingo! AMD + nvidia, Intel + ATI

that will stay the same, what most probably will change are no nforce chipsets for amd and vice versa

#15 vetL3thal

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Posted 05 October 2006 - 02:17

To me, it would make better sense for Intel and nVidia to merge but yet operate separately. I don't think Intel will come out and buy out nVidia. A merger or even collaboration is what could happen.