- I recommend watching Jensen's interview with Patrick Collison at a recent Stripe Conference. Jensen forecasts the need to replace $2 Trillion worth of computers with GPUs.
Optimistic forecast but I can see the need to move away from general compute. The concept of building A.I. factories is fascinating.
- Nvidia has a market cap of $2.6 Trillion. Intel ~$130 Billion, or 5% of Nvidia. If the GPU compute demand is there, Nvidia will need to expand their manufacturing capabilities. Something Intel does well.
Even at a 100% premium, an Intel acquisition would not dilute Nvidia shareholders by more than 10%.
While I don't think this deal is likely (probably will get blocked), it's an interesting thought experiment. At what point will Nvidia manufacture more in-house vs outsourcing?
Let me know what you think. Elliott announced an activist stake in Texas Instruments this morning too. It looks like more semiconductor deal-making will happen either way.
