Nvidia should buy AMD, says analyst

Hoovering up every game technology company in sight to create huge corporations seems to be the latest trend at the moment. AMD has bought ATI, Intel has bought Havok, Nvidia has bought Ageia, and now speculation is building up about Nvidia possibly purchasing AMD.

Doug Freedman from American Technology Research reckons that AMD's shareholders could be pushing for new leadership soon, and that 'One candidate to consider would be Jen-Hsun Huang, who is a serial deliverer with a passion for execution and perfection.'

According to EE Times, Huang has already told Freedman that he wouldn't consider leaving Nvidia to join AMD. However, Freedman reckons that he wouldn't 'walk away from the challenge of buying AMD on the cheap and turning the company around.'

The reason is, of course, because Nvidia is facing an ever-growing threat from Intel since it bought Havok and announced it was going to produce its own discrete graphics part, codenamed Larrabaee. 'The Intel/AMD road-map of integration of the CPU/GPU could pose a risk to Nvidia,' said Freedman, while 'buying AMD propels Nvidia into a formidable competitor for Intel.'

There have been various rumours about potential purchasers of AMD including IBM and Samsung, while others have speculated that Nvidia is developing its own CPU. Whatever is actually happening, Nvidia is certainly going to be increasingly threatened by Intel in the future, and buying AMD could be a way of countering that.