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Nvidia should think about buying chipmaker AMD to "rearchitect it," according to American Technology Research analyst Doug Freedman. Translation: Kick out management, change its technology direction, and end AMD's perpetual Perils of Pauline drama. Both AMD and Intel have plans to integrate graphics functions into their microprocessors, rendering Nvidia's graphics cards superfluous. Nvidia CEO Jen-Hsun Huang would be a good candidate to turn around AMD's fortunes, and "buying AMD propels nVidia into a formidable competitor for Intel," says Freedman.


There's just one problem. AMD has survived as an also-ran to Intel because of a cross-licensing agreement that gives it access to Intel technology. That agreement would not transfer to Nvidia, and Intel's unlikely to strike a new deal with Nvidia. Antitrust concerns would also be significant as AMD recently bought Nvidia's biggest competitor, ATI. Then again, those same worries could work in Nvidia's favor. Since Intel is aggressively moving into Nvidia's graphics market, regulators might force it to strike a deal.

(Photo by AP/Paul Sakuma)