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tbf, If I were Nvidia and antitrust wasn't an issue I'd be tempted to buy the whole thing. Intel has a market cap just 2.5% of NVDA, so you could give away jus
by Panzer04 1y ago
tbf, If I were Nvidia and antitrust wasn't an issue I'd be tempted to buy the whole thing.
Intel has a market cap just 2.5% of NVDA, so you could give away just 2.5% of your stock to buy the entirety of Intel. It's bonkers.
- amalcon 1y agoThere are two scenarios here. In one, the AI bubble bursts (so Nvidia is overpriced now) and almost any value stock deal is good for them. In the other, it doesn't, and this gives them a limited hedge against problems with their most critical strategic partner (TSMC). It looks like a good deal either way and in any amount. But of course I am no expert.
- Panzer04 1y agoI suppose the problem is Intel doesn't actually have the fab capacity anyway. They were building it, but that's all on ice now, and probably wasn't close to TSMC anyway, I'd guess. This all ignores the near complete lack of product out of their advanced processes as well.
- euLh7SM5HDFY 1y agoIf that happened I would expect the same success story as with Boeing-McDonnell Douglas merger.
- xbar 1y agoWhy? That is an example of a bad engineering company being acquired and then poisoning the quality of the acquirer with its toxic, low-quality, corporate-politics-above-engineering culture. There have been a lot of mergers where that has not happened.
- ReptileMan 1y agoDoubtful. The gpus are usually securely mounted and there is no chance for them to ram themselves into the ground at mach speed.