On Monday, Nvidia Corp (NASDAQ:NVDA) dismissed a report saying that it was in talks to acquire a major PC maker.
Nvidia Rejects Buyout Report
"The media report is false; NVIDIA is not engaged in discussions to acquire any PC maker," the company told CNBC.
The denial came after a report suggested the chip giant had been in prolonged negotiations to buy a large-scale PC and server manufacturer.
Nvidia did not immediately respond to Benzinga's request for comments.
Dell, HP Stocks Jump Despite Denial
Despite Nvidia's statement, shares of Dell Technologies (NYSE:DELL) rose 6.74% to close at $189.79 on Monday, while HP Inc. (NYSE:HPQ) climbed 5.31% to $19.23; both stocks pared gains slightly in after-hours trading.
Meanwhile, Nvidia edged up 0.30% to $189.31 during the regular hours and saw a modest dip in after-hours activity, according to Benzinga Pro.
Why The Rumor Gained Traction
The idea of Nvidia acquiring a PC maker stems from a broader push toward vertical integration in AI—controlling everything from chips to hardware systems.
Such a strategy mirrors the tightly integrated approach of companies like Apple Inc. (NASDAQ:AAPL) and has become a growing theme as AI adoption accelerates.
Analyst: Nvidia Deal Unlikely
In a conversation with CNBC's Fast Money, Gene Munster, managing partner at Deepwater Asset Management, said a deal involving Nvidia is unlikely.
"Nvidia still is navigating this margin opportunity that they have," Munster said, noting the company's significantly higher margins compared to PC makers. "That's a wrinkle they need to navigate."
He added that the probability of such a deal is "less than 50%."
AMD, Intel Seen As More Likely Buyers
Munster pointed instead to Advanced Micro Devices, Inc. (NASDAQ:AMD) and Intel Corp (NASDAQ:INTC) as more plausible acquirers, as both companies look for ways to differentiate and compete in the AI race.
NVDA ranks in the 97th percentile for Quality on Benzinga Edge, signaling strong performance across short, medium and long-term trends.
Photo Courtesy: Tigarto on Shutterstock.com