U.S. chipmaker Nvidia Corp said on Monday it will buy Israeli chip designer Mellanox Technologies Ltd for $6.8 billion, beating rival Intel Corp in a deal that would help the company boost its data center business. The all-cash offer of $125 per share represents a premium of 14 percent to Mellanox’s Friday close. Shares of Mellanox rose 8.7 percent and Nvidia shares rose about 1 percent in premarket trading.
Nvidia has developed a way to create an interactive virtual reality environment using real-world videos rather than creating that world with nothing but computer coding.
NVIDIA Corp.’s (NVDA) stock has plunged 30% since reaching an all-time high this month. If that weren’t enough, now the stock is facing a further 11% decline.
StockMarketNews.Today – NVIDIA is still expensive when compared to many other chip stocks. Even with the steep decline, it’s trading at almost double the average one-year forward PE Ratio of the top 25 companies in the iShares PHLX Semiconductor ETF (SOXX).