Nvidia could buy Transmeta

WE NOTICED THAT since this morning that the share price of the firm has fallen by over 16 per cent to $2.75.

Maybe you're selling your shares in TMTA too soon,folks.

While Transmeta did sign a so-called "poison pill" option earlier this year which prevents any companies from taking it over against the firm's will, if the directors agreed to be acquired, then everything would be just fine.

We think Nvidia could perform a very smart little jig, buy the firms and its patents, and then go back to Microsoft, saving it the trouble of designing its own CPU, and instead saying hey - we've got the processor and the graphics for the Xbox 2.

An acquisition by Nvidia would also give it a selection of juicy little patents too.

Now don't forget one thing I pointed out in an article for the INQwell a few months ago. The people at TMTA and the people at NVDA are very friendly with each other.

They've both gone through trouble and strife having to deal with pesky TSMC and my chum tells me that this, in the words of the song, could be the start of something big.

Don't dump TMTA shares too soon, good people. µ