Speculation Mounts Over Intel And Nvidia

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Reuters UK reported today that Nvidia Corp. shares climbed more than 8 percent on Wednesday amid speculation the graphics chipmaker could be acquired by Intel Corp. A spokeswoman for Intel, the world’s No. 1 chipmaker, declined comment, saying her company doesn’t comment on market speculation. A spokeswoman for Nvidia could not be reached.

In light of recent events, namely AMD’s intent to purchase ATI Technology, it would certainly appear that this is a smart move for AMD, as it would enable the Intel rival to enter a new market. Perhaps, the AMD/ATI merger has hit a little too close to home for Intel, and the chipset giant is starting to feel the pinch.

Some observers said that they doubt Intel would buy Nvidia because it’s too expensive. The company has a stock market capitalisation of about $10 billion, which means it would demand a far higher price than what AMD is paying for ATI.

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