A big concern is that the American industry fuzz, the FCC, would not allow such a deal as an Intel and Nvidia Empire would just be too strong.
Intel operates as a virtual monopoly anyhow, argues rival AMD. The contender would certainly cry 'foul' should Intel move for Nvidia. But since it now owns ATI, this argument hardly has a leg to stand on.
American company, AMD, acquired the Canadian company ATI and got away with it. And so Intel will come to the all the governing boards and say AMD now has the high-end graphic and we don't, so that's why we need a high-end graphic firm such as Nvidia.
Nvidia's board of shareholders would likely say yes to $38 per share, the same scenario as ATI shareholders did. Jensen the CEO of Nvidia and the rest of the VPs would be forced to agree.
If this thing doesn't happen, Nvidia will certainly announce a CPU, sooner or later, but I would not say that the Intel eating Nvidia scenario is impossible. ยต