Intel May Acquire Graphics Chip Maker Nvidia [UPDATED]

Intel May Take Over Nvidia

by Anton Shilov
10/05/2006 | 12:31 AM

UPDATE: Adding background details.

 

Reuters news-agency has reported that Intel Corp. may acquire graphics chip designer Nvidia Corp. The announcement may be made in less than 24 hours from now, it is claimed. Sources of the unofficial information could not be determined.

“There is speculation that Intel will make an acquisition announcement tonight,” said Bill Lefkowitz, options strategist at brokerage firm vFinance Investments in New York.

Terms of the possible deal are unclear. Nvidia’s market capitalization is currently nearly $11 billion, which means that the company may be sold for $14 – $15 billion, whereas Intel Corp. only has $7.64 billion in cash currently.

Rumours about possibility of Nvidia acquisition by Intel Corp. have been circuilating since July, when Nvidia rival ATI Technologies announced take over by Advanced Micro Devices, the arch-rival of Intel, for $5.4 billion.

Neither Intel Corp., nor Nvidia Corp. commented on the news-story.