daring dude
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Everything is a stir in Silicon Valley this week as the Wall Street Journal has just announced the hugely popular chipmaker Intel is in negotiates for the acquisition of Altera. If this deal does go through, it will be among the biggest in the history of Intel. When the market closed on Friday, Altera’s market cap finished at $13.36 billion.
While this is one of the biggest deals Intel has ever made, technology analyst Patrick Moorhead advises that it would be well worth the investment for the company, as it would provide them with something that will protect their big money product: servers. After all, Intel chips occupy about 98 percent of this market share.
And Altera has been out there, making a name for themselves too. Some companies have already begun to use their Field Programmable Gate Array chips in their data centers. The FPGA chips are reprogrammable and can run very specific tasks much faster than Intel’s processing chips would be able to do on their own.
And with companies like Microsoft and Baidu already using Altera FPGA chips in combination with Intel processing chips, their exposure to the market would already be established if they simply acquired this company. Moorhead also explains that there is a chance these two companies could opt to use Altera FPGA chips with ARM-based processing chips, which is a major threat to the Intel x86 dominant business. Thus, as Moorhead says, “If Intel owns Altera, the chance of that happening is zero percent.”
But the benefit is not just for Intel. At the simple mention of this possibility, for example, Altera stock rocketed up by nearly 30 percent to reach $44.39 per share on Friday
While this is one of the biggest deals Intel has ever made, technology analyst Patrick Moorhead advises that it would be well worth the investment for the company, as it would provide them with something that will protect their big money product: servers. After all, Intel chips occupy about 98 percent of this market share.
And Altera has been out there, making a name for themselves too. Some companies have already begun to use their Field Programmable Gate Array chips in their data centers. The FPGA chips are reprogrammable and can run very specific tasks much faster than Intel’s processing chips would be able to do on their own.
And with companies like Microsoft and Baidu already using Altera FPGA chips in combination with Intel processing chips, their exposure to the market would already be established if they simply acquired this company. Moorhead also explains that there is a chance these two companies could opt to use Altera FPGA chips with ARM-based processing chips, which is a major threat to the Intel x86 dominant business. Thus, as Moorhead says, “If Intel owns Altera, the chance of that happening is zero percent.”
But the benefit is not just for Intel. At the simple mention of this possibility, for example, Altera stock rocketed up by nearly 30 percent to reach $44.39 per share on Friday
