Nvidia (NVDA) – Get the report and other semiconductor companies grew on Monday, following news of DLGNF’s acquisition of Dialog Semiconductor by Renesas Electronics RNECY and a continuing shortage of chips.
Nvidia rose 6% to $ 576.35 in the last check, while Advanced Micro Devices (I HAVE D) – Get the report increased by 4%, and Intel (INTC) – Get the report increased by 1.42%.
The increase was partly driven by the announcement that Renesas had agreed to buy Dialog Semiconductor for $ 6 billion in cash.
Shares of the UK Dialogue, whose customers include Apple (AAPL) – Get the report, increased 16% to $ 78.99.
“Energy management is the DNA of the Dialogue’s intellectual property,” Mirabaud Securities analyst Neil Campling said after the transaction was announced, Reuters reported.
“As we move into a world increasingly focused on battery technology, EV vehicles and harnessing 5G’s ‘power absorption’ capabilities in the smart industrial future – power, energy efficiency and energy management – are crucial,” he said. said the analyst.
The semiconductor sector has also felt the impact of stopping the coronavirus pandemic, as car production has slowed and car sales have fallen.
As car factories reopened, customer demand for cars accelerated.
In addition, the demand for chips increased as consumers, who were at home because of the outbreak, bought laptops, TVs and other devices.
Last week, Ford F said it would reduce production of its hugely popular F-15 truck at two factories due to a worldwide lack of computer chips.
Other car manufacturers, including General Motors (GM) – Get the report, Mazda (MZDAY) and Stellantis all said they would have to cut production due to a lack of chips.
TheStreet.com founder Jim Cramer said Friday that the lack of chips “is very real.”
“The Chinese are accumulating chips dramatically,” he said. “We have amazingly deceived the supply chain. We let Taiwan dominate, we do not make factories here – thank you, Intel. We certainly need a whole new set of foundries.”