Intel Nvidia Acquisition 'Unlikely'

Rumors of an Intel acquisition of Nvidia have prompted scepticism among graphic chip analysts.

Rumors helped Nvidia shares surge in the middle of the week, and lured press outlets into running stories of the unlikely take-over.

But Merrill Lynch analyst Joe Osha stated, "We don't think there's a solid rationale for a deal and we don't think it's going to happen. With discrete GPU attach rates likely to increase as Microsoft Vista rolls out, and market share likely to go up, we'd think that Nvidia's management and shareholders have high hopes for the company as an independent entity. Convincing them to vote for a deal could be tough."

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