Nvidia shares rocket on Intel takeover rumors
Culver City (CA) - Nvidia shares rocketed up almost 10% in Wednesday's trading as rumors flew about a possible takeover from Intel. More than 22 million Nvidia shares traded on Wednesday with prices rising about 9.8%. So far this morning, stock prices have dipped about 2% to $30.45 a share.
Nvidia and Intel so far haven't commented on the rumors which have been published by several analysts and news publications. One analyst, Merril Lynch's Joe Osha believes a merger woudn't make sense and wrote, "We think it's wrong to assume that Nvidia must be a potential target for Intel."
Osha explains that unlike AMD, Intel has a successful integrated graphics product line. In fact, Intel often says that it sells a majority of the graphics processors on the market.
Rumors about the takeover have been simmering ever since Intel's rival, AMD, bought ATI for $5.4 billion back in July.