Key insights
- Nvidia denied rumors of acquiring a PC manufacturer, causing Dell and HP shares to fall in after-hours trading after an initial surge. The denial removes a potential catalyst for these stocks, creating a slightly negative sentiment shift in the short term.
Investing.com -- Nvidia (NASDAQ: NVDA) said Monday that reports of the company being in discussions to acquire a PC manufacturer are false.
The chipmaker responded to earlier reports in an emailed statement, saying it is not engaged in discussions to buy a PC maker.
“The media report is false; NVIDIA is not engaged in discussions to acquire any PC maker," a Nvidia spokesperson said in a statement to Investing.com.
Earlier SemiAccurate reported that Nvidia had been in negotiations for over a year to acquire a large company in a deal that could reshape the PC and server landscape.
Dell Technologies (NYSE: DELL) shares rose 6.7% Monday, while HP Inc. (NYSE: HPQ) gained 5.3%, following the initial reports. The market response suggested investors were speculating that either Dell or HP could be potential acquisition candidates.
The report stated that Nvidia was looking to make a purchase that would reshape the industry, though it did not specify which company Nvidia might be targeting.
Dell and HP shares were lower by over 3% in post-market trading after Nvidia shot down the rumor.