Have you been spending too much time on wallstreetbets? This doesn't make any logical sense, a sharp increase in numbers doesn't justify taking on 24bn net debt.
It's not debt. You issue 24B in stock, and use that to pay for Intel.
If investors think it's a good idea, market cap goes up by more than 24B. If not, by less.
I am looking for honest thoughts. I have not been spending any time on wallstreetbets, and I had hoped for a good discussion of pros and cons. I have no clue if it's a good idea or bad.
I’m not an expert on either company, but as I see it NVIDIA has a massive scale of R&D that is very effective and meaningfully focused. Intel seems to be cutting a massive amount of R&D that went no where & also doesn’t seem to have a clear thesis about who they are in the future.
Generally M&A’s argument is that it’s more capitally efficient to acquire. There’s certainly a a case to be made for that here, but having seen a few engineering teams post M&A it could actually be a poison pill for NVIDIA.
I’d love to hear from other more informed people what I’m missing here.
NVidia's focused R&D efforts to improve Intel platforms.
The Intel platforms are still very, very good, and very, very hard to replicate. It took many decades of concerted optimization to get here. AMD is a little bit ahead right now, but it took many decades of R&D to get there.
Other efforts to do so -- even when x86 was much simpler -- went nowhere. Remember WinChip, MediaGX, Geode, C3, C7, Nano, 5x86, 6x86, and that whole debacle of Intel-competing products?
