The two big players in the graphics market are NVIDIA and ATI. When AMD bought ATI it also became a rival to NVIDIA. AMD profits continue to plummet with no help from ATI as its products see sales declines as well.
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Heise-online says that NVIDIA could possible buy AMD if AMD has another serious misstep resulting in a loss in stock price. I can hardly see this merger gaining U.S. regulatory approval since it would clearly give a merged NVIDIA/AMD a monopoly in the graphics segment.
There is simply no real third place player in the graphics market right now since Intel is only integrated. NVIDIA would have a chokehold on the discrete and mobile graphics market after a merger. I for one just don’t see that happening.
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