(April 14): Nvidia Corp denied a report from website SemiAccurate that it was seeking an acquisition of a large company that would “reshape the PC landscape”.
The website said Nvidia had been negotiating a deal for more than a year. The report sparked a rally on Monday in the shares of PC makers Dell Technologies Inc and HP Inc.
“The media report is false; Nvidia is not engaged in discussions to acquire any PC maker,” a company spokesperson told Bloomberg News.
Dell and HP are among the top PC vendors in the world. HP, based in Palo Alto, California, has 19% of the global market in the first quarter, trailing just Lenovo Group Ltd, which had a share of almost 27%, according to Gartner Inc, an industry research firm. Dell, based in Round Rock, Texas, had about 17% market share, the firm said.
Nvidia, the world’s most valuable company, is the biggest maker of chips to power artificial intelligence (AI) work. Chief executive officer Jensen Huang has been a leading advocate for the use of AI across the economy, urging companies to experiment with how the emerging technology can help their businesses.
The company invested US$70 billion ($89.1 billion) in partners and customers in the fiscal year that ended in January to help further AI.
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Dell also manufactures AI servers that use Nvidia chips, and predicted it will generate about US$50 billion in revenue from that business in the current fiscal year, which ends in January 2027.
Dell shares fell 3.4% in extended trading after Nvidia’s comments. Earlier, the stock jumped 6.7% to close in New York at a record high of US$189.79. HP stock also declined more than 3% in extended trading after gaining 5.3% during the day to close at US$19.23.
Dell and HP didn’t respond to requests for comments.
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