Intel Corp. is an unlikely suitor for chip maker Nvidia Corp., analysts said Thursday, although a source familiar with the situation noted takeover interest in Nvidia from various players in its sector. Nvidia shares climbed more than 8 percent on Wednesday on speculation that the graphics chipmaker could be acquired by Intel, traders said. Analysts, however, doubted whether such a deal would ever occur.
"There"s been plenty of speculation this week regarding whether Intel might acquire Nvidia," wrote Merrill Lynch analyst Joe Osha in a note to clients published Thursday. "We don"t think there"s a solid rationale for a deal and we don"t think it"s going to happen." A source familiar with the situation said on Thursday that there had been interest in Nvidia from various players in the sector, but it was not known whether any formal discussions had been held or are currently active.