Nvidia (NVDA) – Request report and other semiconductor companies went up Monday following news of the DLGNF acquisition of Dialog Semiconductor by Renesas Electronics RNECY and a persistent chip shortage.
Nvidia was up 6% on the latest check to $ 576.35, while Advanced Micro Devices (AMD) – Request report was up 4%, and Intel (INTC) – Request report rose 1.42%.
The increase was driven in part by the announcement that Renesas had agreed to buy Dialog Semiconductor for $ 6 billion in cash.
Shares of UK-based Dialog, with customers including Apple (AAPL) – Request report, were up 16% to $ 78.99.
“Power management is the DNA of Dialog’s intellectual property,” said Neil Campling, Mirabaud Securities analyst, after the deal was announced, Reuters reported.
“As we move forward in a world increasingly focused on battery technology, EV vehicles and harnessing the power sucking capabilities of 5G in the smart industrial future – energy, energy efficiency and power management – are critical,” said the analyst.
The semiconductor sector has also felt the impact of the closure of the coronavirus pandemic as car production slowed and car sales fell.
The reopening of car factories increased customer demand for cars.
In addition, the demand for chips increased as consumers, who were home-tied due to the outbreak, bought laptops, TVs and other devices.
Last week, Ford F said it would cut production of its extremely popular F-15 pickup truck in two plants due to a global shortage of computer chips.
Other car manufacturers, including General Motors (GM) – Request report, Mazda (MZDAY) and Stellantis all said they should cut production due to the shortage of chips.
TheStreet.com Founder Jim Cramer said on Friday that the shortage of chips is “very real.”
“The Chinese are dramatically hoarding chips,” he said. “We’ve screwed up the supply chain amazingly. We’ve let Taiwan dominate, we’re not making factories here – thanks, Intel. We absolutely need a whole new set of foundries.”