Mellanox's (Nasdaq: MLNX) share price continues to approach its all-time peak levels, against a background of reports that the Israeli fabless semiconductor company is a possible acquisition target for several big companies. It is believed that Nvidia Corporation (Nasdaq: NVDA) has joined the list of candidates to buy Mellanox, alongside Intel, Xilinx, and Microsoft, which have been touted as possible buyers in the past.
Mellanox is traded on Nasdaq at a market cap of $5.9 billion. Investors expect that if an acquisition deal goes ahead, it will be at large premium (certainly in the light of the high interest in the company), and that the valuation will be in excess of $6 billion. Mellanox said in response that it does not comment on rumors.
Mellanox, managed by founder Eyal Waldman, produces interconnect solutions using InfiniBand and Ethernet technologies.
Nvidia has a market cap of $91.3 billion, following a 38% decline in its share price over the past year. The company develops and sells graphics processors that include artificial intelligence components. Among its markets are the gaming industry, autonomous vehicles, and data centers.
A few months ago, "Globes" first reported the opening of Nvidia's artificial intelligence research center in Israel, under Prof. Gal Chechik.
Published by Globes, Israel business news - en.globes.co.il - on March 10, 2019
© Copyright of Globes Publisher Itonut (1983) Ltd. 2019