Nvidia (NVDA) – Get the report and other semiconductor companies rose on Monday, following news of DLGNF’s acquisition of Dialog Semiconductor by Renesas Electronics RNECY and the continuing shortage of chips.
Nvidia rose 6% to $ 576.35 at last checkout, while Advanced Micro Devices (AMD) – Get the report rose 4% and Intel (INTC) – Get the report rose 1.42%.
The increase was motivated in part by the announcement that Renesas had agreed to buy Dialog Semiconductor for $ 6 billion in cash.
Dialog shares based in the UK, including Apple (AAPL) – Get the report, rose 16% to $ 78.99.
“Energy management is the DNA of Dialog’s intellectual property,” said Neil Campling, a Mirabaud Securities analyst after the deal was announced, Reuters reported.
“As we move forward in a world increasingly focused on battery technology, EV vehicles will take advantage of 5G ‘s’ power suction’ capabilities in the smart industrial future (power, energy efficiency and energy management). energy) are crucial, ”the analyst said.
The semiconductor sector has also felt the impact of the halt of the coronavirus pandemic, as car production slowed and vehicle sales fell.
When car factories opened, customer car demand accelerated.
In addition, the demand for chips increased as consumers, who were at home due to the outbreak, bought laptops, TVs and other devices.
Last week, Ford F said it would reduce production on its popular two-story F-15 pickup truck due to the global shortage of computer chips.
Other car manufacturers, including General Motors (GM) – Get the report, Mazda (TUESDAY) and Stellantis said they should reduce production due to a shortage of chips.
TheStreet.com founder Jim Cramer said Friday that the chip shortage “is very real.”
“The Chinese treasure chips dramatically,” he said. “We shrewd the supply chain incredibly. We let Taiwan dominate, we don’t manufacture factories here, thank you, Intel. We definitely need a whole new set of foundries.”