Nvidia Buyout Rumors Surface Again

By Nate Mook | Published October 5, 2006, 12:07 PM

Speculation that Intel is preparing to announce an acquisition of graphics chipmaker Nvidia surfaced again on Wednesday, pushing Nvidia's stock up over 10 percent before it began to fall again Thursday morning. Analysts said an announcement was impending, but it never happened.

Nvidia has looked like a promising target for Intel since its rival AMD acquired ATI in July for $5.4 billion. The merger will allow AMD to offer integrated processor and graphics solutions to its customers. By 2008, AMD plans to introduce new processor configurations that would integrate the CPU and graphics processor into a single unit.

But despite rumors that Intel would trumpet the news Wednesday night, the company has remained silent, only saying it does not comment on market speculation. Still, the anticipation made for a flurry of trading on Wall Street, with Nvidia trading at twice its usual volume, according to market research firm Track Data.

Some analysts remained skeptical that a buyout would take place. Nvidia's market capitalization of over $10 billion makes it an expensive proposition for Intel, requiring the company to pay far more than AMD did for ATI. In addition, unlike AMD, Intel already makes integrated graphics chips.

Satya Chillara, an analyst with Pacific Growth Equities, downgraded Nvidia's stock from "buy" to "neutral" Wednesday. "We believe that the January quarter is not looking strong from a demand perspective, mainly due to concerns of the AMD-ATI bundling once the merger is complete in October," he wrote to investors.

Comments

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This is a good move for the business market, Integrated GFX that is. In my experience, most office and general use PC's have the all in one motherboard. This obviously is because the main duties of these machines are not too graphically demanding.

While the gamers will scoff at this idea, it is not aimed at them, more towards the business and budget market. But with better motherboards with a PCIe connector as an upgrade path, it will become quickly adopted. Just like onboard sound, it soon became a feature motherboard makers used to tempt buyers. And most people are happy with the quality and still offers those who are not to upgrade and jumper/bios it out.

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Does Intel now copy everything AMD does?

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Yes.

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"In addition, unlike AMD, Intel already makes integrated graphics chips."

That's missing a word.

"In addition, unlike AMD, Intel already makes sh*t integrated graphics chips."

That's missing 2 words.

"In addition, unlike AMD, Intel already makes CRAPPY OUTDATED sh*tTY integrated graphics chips."

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"In addition, unlike AMD, Intel already makes integrated graphics chips."

That's missing a word.

"In addition, unlike AMD, Intel already makes sh*t integrated graphics chips."

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Is there good integrated graphics? No. You want good you buy dedicated videocard. If you're not playing games, Intel makes excellent integrated graphics chips with great software.

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What about nVidia's 6100 and 6150 integrated graphics for AMD platforms? They both outperform Intel's integrated graphics by a very significant margin.

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it will truly be a war of titans then...and I think if it happens will lead intel/nvidia back into unrivalled dominance.

Then IBM will decide to not just provide govt/private corporation computing...sell "cell like" chips to consumers. And we will have a 3 tier chip setup with IBM in the number 1 or 2 spot, depending on their choosing :)

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As of late IBM and AMD seem to getting along.

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People have been talking about this sort of thing for years.

They will probebly just do it one day out of the blue, and no one will see it coming. If they do end up doing it at all.

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George Orwell's world is slowly coming.

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We all know that's true, but it's been a while since I read that book - did it cover corporate acquisitions? I don't seem to remember that part...

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Sounds interesting.

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Microsoft, Intel and Nvidia are the Devil people! We all know it...

Nvidia is already a monopolistic bas**** that charges $$$$$ for a new generation of GPU that's 1mhz faster and offers no innovation over it's predessors. Tries to kill OGL on gaming cards to charge $$$$$$$ for Quadro cards
that are the same mutton dressed up as lamb crud anyway.

Fantastic that fit's right in with Intel's low or no innovation, twice as expensive, and also 1Mhz faster than previous generation business model.

What's next a "Moores Law" for Nvidia, which will speculate that Nvidia will double it's profits every year and rip off an extra 1.8 customers per month for the next ten years with a steady slow release of crap.

Genius i tellz ya, genius....

Now if Microsoft could just buy Intel, this would be a certain sign the Apocalypse is surely only days away...

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Where do you buy your weed?

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lmao, I wanted to say that

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I think he's using something stronger than weed.

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