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Should Intel buy Nvidia

After a long break I am writing on my blog - I was off to India for my vacation and before that was too busy in finishing first year of MBA. Now that I have off from MBA@Berkeley, I can spend some time in writing up some stuff.

Today AMD bought ATI technologies and that brought me to think - should Intel buy Nvidia. I think it will fit very nicely. First of all, Intel, unlike AMD can digest acquisition like Nvidia even if they paid about $8B (for about $ 23 per share). It would get Intel into graphics chip market which is grwoing faster than Intel's own business and fits well with it's focus on PC business (unlike its communication business). After AMD/ATI deal, Nvidia is also last pure playin this space. All other parameters like P/E, P/S ratios are comparable and even lower than Intel. Last but not least, it's right across the road from Intel head-quarters in Silicon Valley.

Continuing on the theme of in-organic grwoth, I do believe that SanDisk should buy M-systems to expand its market (there is rumor on this and as dis-claimer, I do own little bit of M-systems) since flash market seems to be as hot as California summer!

Comments

Anonymous said…
intel is going to buy nvidia at 41$

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