A report surfaced online last week that may not be entirely surprising given how wealthy Nvidia has become, but the potential consequences would be shocking. According to SemiAccurate, run by longtime IT journalist Charlie Demerjian, Nvidia is preparing to acquire a major PC vendor—or at least a “PC‑oriented company.” Such an acquisition could turn Nvidia into a vertically integrated market hegemon similar to Apple.
SemiAccurate writes that it has been tracking information about this planned acquisition for over a year, with early hints emerging behind the scenes at the end of 2024, and that negotiations may now be entering their final phase. Nvidia reportedly wants to make a major acquisition, and its merger with the target company could transform the personal computer market—and the server market—“like nothing else since the invention of the computer” (though that statement may be somewhat exaggerated).
Such a merger would mean Nvidia would no longer sell just one (albeit very expensive) component for a computer, but entire systems. Its revenue—and potentially its profits—would grow dramatically, along with its power to shape the market and further strengthen its position. Beyond GPUs, the company already produces its own server CPUs and plans to launch PC processors. It could therefore offer nearly complete systems—everything except the operating system.
The public version of the article does not name which PC manufacturer or related company is involved. If it’s not one of the major PC (and server) makers such as HP or Dell, or perhaps Asus from the from the Asia-based ones, an extreme scenario could be the acquisition of Intel (though Nvidia missed the best opportunity for this, back when Intel’s stock price was extremely low), or Foxconn, which does not sell computers directly but manufactures them as an ODM supplier for many companies. Of course, more conservative possibilities are the ones that are more likely. In response to the rumor, Dell and HP shares rose by several percent.
Nvidia denies the reports
Nvidia has already issued a statement denying the report—even though the company usually avoids commenting on leaks. According to Nvidia, “the media report is false; NVIDIA is not engaged in discussions to acquire any PC maker.”
However, it’s reasonable to assume the company would deny it even if negotiations were underway (and statements can be crafted carefully to “deny” only specific interpretations to not be in conflict with the reality). It is standard practice that companies do not acknowledge acquisition talks or similar deals while negotiations are ongoing. For Nvidia as the buyer, there is also a practical reason: if news of a planned acquisition leaks, the target company’s stock price rises, forcing the buyer to pay more. Therefore, the existence of a denial does not guarantee the rumor is false.
Even if negotiations for a major acquisition were indeed happening, there is no guarantee the deal would be completed—many such contracts are never finalized or announced because talks break down. So while the implications could be far‑reaching, it’s unclear how seriously to take these reports.
There is also precedent in Nvidia’s attempt to acquire Arm, which was an extremely ambitious takeover that eventually fizzled as it failed to clear regulatory approval. It’s questionable whether Nvidia could push through an acquisition that would make it an even more dominant force in the PC market today, especially since its position has strengthened further due to the AI boom compared to when it attempted to buy Arm.
While in the US—currently under a Republican administration—antitrust enforcement may be weaker and previously impossible deals might be pushed through via close ties to the government, China remains a major obstacle. Chinese regulators would likely again use the rejection of such an acquisition as a political tool in its rivalry with the US. However, if Nvidia were to buy a company whose operations do not require approval from Chinese antitrust authorities, the situation could be different.
In any case—if there is any truth to the rumors—we will likely learn more over time. Nvidia’s current success gives it a rare opportunity to pursue acquisitions that were previously unthinkable, making it very plausible that the company is actively evaluating how to take advantage of this.
The extremely high price of Nvidia’s stock works in its favor. The company could use it to finance massive purchases if part of the acquisition cost were paid in shares rather than cash. If the AI boom weakens, this opportunity could disappear, so Nvidia’s management may see the current situation as a unique window of opportunity that should be used as soon as possible.
Sources: SemiAccurate, CNBC
English translation and edit by Jozef Dudáš
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