On Monday, Marvell Technology announced it intends to acquire embedded chip maker Cavium in a deal worth $6 billion. When it’s done, the combined company will have $3.4 billion in annual sales. That’s hardly Intel territory, but their chips will be in practically every piece of equipment in your data center.
There has been quite a bit of consolidation going on in the chip industry as every player gobbles up a competitor or complimentary vendor to give them a competitive advantage and diversification of products. Only Nvidia seems to be staying out of this, content to compete with what it has. And who can argue with the results? Certainly not its shareholders.