Sometimes, rumors can send stock prices soaring. The latest? That of NVIDIA’s acquisition of a PC manufacturer. Of course, NVIDIA publicly refutes this rumor, which nonetheless sent HP and Dell’s share prices soaring yesterday. Clearly, this is not part of the chameleon’s plans, nor is it part of the company’s strategy!
No, NVIDIA is not going to acquire a PC manufacturer!
The greens don’t want to compete with their partners!
Admittedly, when you’re a company like NVIDIA, acquiring a PC manufacturer is a move that can make sense. It gives you control over the entire production chain, from design to integration. What’s more, you can take advantage of more advanced software integration, while having full latitude for hardware design without having to anticipate any external constraints, etc. However, this is not in the company’s plans, as it has publicly announced.
Acquiring a PC manufacturer also means entering into direct competition with long-established OEMs. These include DELL, HP, ASUS, MSI, Gigabyte and others. What’s more, it’s a move that would not have gone down well with NVIDIA’s partners, for obvious reasons. We’re thinking of lower allocations in favor of our own brand, for example. This could have posed a major neutrality problem.
Of course, it could be argued that NVIDIA does the same with its consumer graphics cards by selling Founders Edition. However, FE cards are produced in limited quantities and are regularly out of stock.
HP and Dell share prices up on Monday!
And yet, these rumors seemed to convince investors, as DELL and HP share prices rose. Indeed, on Monday, Dell’s share price was up ed 6%, compared with more than 5% for HP. Despite NVIDIA’s denial, share prices remained stable.
