Intel is considering increasing its stake in graphics technology company Nvidia, in order to counter the proposed merger of AMD and ATI, according to a report by Digitimes.
The chip maker's share price rose by eight per cent on Wednesday on the back of speculation that it may attempt to acquire Nvidia. Intel currently owns around nine per cent of the company's stock.
However a takeover is thought to be unlikely. Instead Intel may simply buy additional shares and seek to form a strategic alliance with Nvidia.
'The partnership would imply that Nvidia decreases product developments for the AMD platform and devotes more efforts to IGP (integrated graphics processor) chipsets for the Intel platform,' Digitimes said, citing sources.
AMD announced in July that is had made a $5.4 billion offer for ATI; the two companies are Intel and Nvidia's main rivals in, respectively, the computer processor and graphics processor markets.
News source: Custom PC