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Nvida reports Intel's dividend for Mellanox



SAN FRANCISCO – Nvidia is close to completing an agreement to provide network vendor ICS vendor Mellanox Technologies for over $ 7 billion in cash, according to a report from the Reuters news service.

The report, called an anonymous source, said that Nvidia has handed rival Intel to Mellanox. Nvidia could announce the agreement early in the week, according to the report.


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A spokesman for Nvidia refused to comment on the report and cited company policy against commenting on rumors or speculation. Mellanox did not immediately respond to a request for comment from the EE Times.

An agreement to purchase Mellanox would immediately increase Nvidia's data center. It will also make a huge boost to the company's efforts to further diversify sales beyond the PC gaming industry, which has historically been the dominant source of Nvidia's revenue.

Nvidia has made significant progress over the past year to increase revenue diversity. In the most recently completed quarter, Nvidia lost 43% of its $ 2.2 billion in gaming sales, compared with 31

% for data centers. A year earlier, gaming accounted for 54% of the company's $ 3.2 billion in revenue in the quarter, compared to just 19% for gaming.

Later last year, Mellanox claimed a financial advisor to help explore the opportunities for selling the company. In late 2017, in the midst of the unsurpassed merger and acquisition boom of the semiconductor industry, Mellanox took heat from institutional investors, including Starboard Value LP – one of Mellanox's largest investors – to stumble upon a takeover transfer by Marvell Technology.

A bid of $ 7 billion for Mellanox would represent a premium of around 19% over the company's market value of around $ 5.9 billion as of May 10.


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