BOSTON (Reuters) - Nvidia Corp. (NVDA.O: Quote, Profile, Research) shares climbed more than 8 percent on Wednesday amid speculation the graphics chipmaker could be acquired by Intel Corp. (INTC.O: Quote, Profile, Research), traders said.
A spokeswoman for Intel, the world's No. 1 chipmaker, declined comment, saying her company doesn't comment on market speculation. A spokeswoman for Nvidia could not be reached.
Nvidia shares rose $2.32 to $30.62 in afternoon Nasdaq trade. Some 20 million shares changed hands, about double the three-month daily average.
Investors have been speculating that Nvidia might be acquired since July, when Advanced Micro Devices Inc. (AMD.N: Quote, Profile, Research) agreed to buy Nvidia rival ATI Technologies Inc. (ATYT.OQ: Quote, Profile, Research) for $5.4 billion. Rumors of such a transaction resurfaced on Wednesday, spreading quickly across Wall Street trading desks, according to three options market participants.
"There is speculation that Intel will make an acquisition announcement tonight," said Bill Lefkowitz, options strategist at brokerage firm vFinance Investments in New York.
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