No news of the discussions regarding the Intel/nVidia merger have surfaced for a few days now and analysts are getting restless. An analyst for Merril Lynch claimed, We don't think there's a solid rationale for a deal and we don't think it's going to happen. Others are also now appearing to be sceptical of the chances of a merger quoting nVidia's expensive price and the possibility of antitrust issues as reasons.
What analysts are now suggesting is that nVidia needs the merger more than Intel as it will soon find itself the weaker side in the graphics market; AMD and Intel will have the majority of the motherboard market while ATI and Intel are expected to dominate the low end graphics market. This might suggest that other big electronics companies may be tempted to approach nVidia, with Samsung seeming to be the most likely candidate. The company's advanced graphics know-how, especially as DX10 is round the corner, may serve as a prestige temptation for future suitors.
Stay with MegaGames for more news on the Intel/nVidia merger.
