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Nvidia loves the AMD-ATI deal

Short term, skipping launch dates and losing people
Thu Jul 27 2006, 10:27
NVIDIA is really enjoying ATI's proposed acquisition by AMD. Short term, things could not be better for the green company. As soon as the rumour went around, a bunch of ATI people started to send their CVs to Nvidia.

Nvidia might even get some of the hot shots as few jobs at ATI are certain anymore. You don't need two sets of accountants and two marketing departments and there have to be some cuts sooner or later, if the deal goes ahead.

According to green sources, Nvidia has already received over a hundred job requests from ATI chaps. The second thing that Nvidia likes is that the uncertainty is likely to delay some of the products. ATI is already late by more than a quarter with its 80 nanometre RV560 and RV570.

The third thing that Nvidia likes, and some chaps close to the company confirmed, is that the SNAP, the partnership between Nvidia and AMD is going to grow even stronger. Nvidia holds the majority of the AMD chipset market and AMD has to respect that. Otherwise it will just hurt itself. AMD has to earn a lot of money and cannot play games and upset companies such as Nvidia, and it won't.

The next two quarters will be the most difficult ones in AMD's history as the company has to make money and the Conroe based Core 2 Duo will get cheaper and is a better performer. Long term, we are sure that Nvidia will suffer from the deal, but it will take time until that happens.We think this development might just make Nvidia stronger than ever before. µ


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