Nvidia Dismisses Acquisition Rumors as Dell and HP Stocks Rebound
Nvidia Denies Report of Acquisition Plan for PC Maker
Nvidia Corp. has denied a report from website SemiAccurate that it was seeking an acquisition of a large company that would "reshape the PC landscape." The website claimed that Nvidia had been negotiating a deal for more than a year, sparking a rally in the shares of PC makers Dell Technologies Inc. and HP Inc. on Monday.
A company spokesperson told Bloomberg News that "The media report is false; Nvidia is not engaged in discussions to acquire any PC maker." This denial led to a decline in shares for both Dell and HP in extended trading, with Dell's shares falling 3.4% and HP's shares declining more than 3%.
Dell and HP are among the top PC vendors in the world, with HP holding a 19% share of the global market in the first quarter, trailing just Lenovo Group Ltd., which had a share of almost 27%, according to Gartner Inc., an industry research firm. Dell had about 17% market share, the firm said.
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| Company | Global Market Share (Q1) |
|---|---|
| Lenovo Group Ltd. | 27% |
| HP Inc. | 19% |
| Dell Technologies Inc. | 17% |
Nvidia, the world's most valuable company, is the biggest maker of chips to power artificial intelligence work. Chief Executive Officer Jensen Huang has been a leading advocate for the use of AI across the economy, urging companies to experiment with how the emerging technology can help their businesses.
The company invested $70 billion in partners and customers in the fiscal year that ended in January to help further AI. Dell also manufactures AI servers that use Nvidia chips, and predicted it will generate about $50 billion in revenue from that business in the current fiscal year, which ends in January 2027.
Dell shares had jumped 6.7% to close in New York at a record high of $189.79 earlier in the day, but declined in extended trading after Nvidia's comments. HP stock also declined in extended trading after gaining 5.3% during the day to close at $19.23.
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Investor Takeaway
Investors should be cautious of acquisition rumors and focus on the company's actual performance.
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