Top 10 reasons why Intel shouldn’t buy Nvidia

October 6, 2006, 1:00 AM UTC
Fortune


Intelnvidia

10.
AMD just bought ATI, guys. Don’t be a copycat.


9.
Isn’t Intel having enough trouble managing Intel?


8.
Nvidia would probably cost about 15 percent of Intel’s market cap after the stock prices adjusted.


7.
Why throw fuel on the ol’ antitrust fire?


6.
Institutions hold roughly three quarters of Nvidia’s stock, and would drive a hard bargain.


5.
Buying Nvidia does nothing to address Intel’s real problems.


4.
Profit-wise, an Intel turnaround would be worth multiple Nvidias.


3.
Nvidia’s model is a FABLESS semiconductor company – add in fabs and the economics change significantly.


2.
It would be the worst kind of distraction from the important battle for the low-cost server market.


1.
AMD just became Nvidia’s biggest enemy, too. Partner up. Why buy the cow when you can get the milk for free?