Putting a stop to this tussle will let NVIDIA back into the chipset design game, and should also give Intel more access to NVIDIA's advanced graphics technologies. That's an area where Intel's own efforts have been found sorely lacking against leading technologies from NVIDIA and Advanced Micro Devices
Is Intel rushing to make this move in order to counter the threat from AMD's highly capable Fusion products? Building complete systems into one chip, or at least an integrated set of chips, is all the rage. Witness AMD's long-planned move into this space, as well as by the plethora of mobile chipsets made by NVIDIA, Qualcomm
I'm inclined to believe this report, because Intel needs to partner up with NVIDIA rather than destroy it. An outright acquisition would likely fail on antitrust grounds, but a cross-licensed partnership would be just the ticket. NVIDIA gets less out of the suggested deal than Intel does, so a sorely needed cash payment to make up the difference should be on its way.
Fool contributor Anders Bylund holds no position in any of the companies discussed here. Intel is a Motley Fool Inside Value selection. NVIDIA is a Motley Fool Stock Advisor pick. The Fool owns shares of and has bought calls on Intel. Motley Fool Options has recommended buying calls on Intel. The Fool owns shares of Qualcomm and Texas Instruments. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. You can check out Anders' holdings and a concise bio if you like, and The Motley Fool is investors writing for investors.