Nvidia announced today it is at a premium ($6.9 billion) over its current valuation. If the rumors are true, Nvidia , Xilinx, Microsoft and perhaps some others looking to add Mellanox to their technology base. Known mostly as a fast Ethernet and InfiniBand technology supplier, Mellanox has focused more on the high performance data center and cloud marketplace than on traditional enterprise servers and PCs where Nvidia has a significant presence with its GPUs. So why is this acquisition important to Nvidia, and is it a good combination?
Nvidia’s long term growth requires that it not only focus on its