- "This is a homerun deal. Man, I've been dreaming about this," Nvidia CEO Jensen Huang told CNBC of the gaming graphics manufacturer's $7 billion acquisition of Mellanox Technologies.
- "We're combining the leaders of AI computing and high speed networking and data processing into one company and, so, this is really quite extraordinary," he said in a "Mad Money" interview.
- "With that, hopefully we could, you know, accelerate the innovation and create amazing things for data centers going forward," he said.
Nvidia CEO Jensen Huang in an appearance on CNBC Monday took a victory lap after his company completed its long-awaited merger of chip producer Mellanox Technologies.
"This is a homerun deal," he told Jim Cramer in a "Mad Money" interview. "Man, I've been dreaming about this."
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The $7 billion acquisition took more than 13 months to complete since it was first announced in the first quarter of 2019 amidst a trade war between economic powerhouses U.S. and China. Mellanox, an Israel-based supplier for high-performance network computing, counts China's Alibaba and Baidu as major customers.
China regulators approved the deal on April 16, months after authorities in the U.S. and the European Union gave the deal their blessing without conditions last year. Nvidia, known for its gaming graphics chips, is based in Santa Clara, California.
Nvidia is seeking to boost its data center and artificial intelligence business with Mellanox in efforts to compete with Intel.
"We're combining the leaders of AI computing and high speed networking and data processing into one company and, so, this is really quite extraordinary," said Huang, who has led the company for nearly three decades.
The tie up gives Nvidia end-to-end expertise in data center services, a larger footprint and more scale.
"With that, hopefully we could, you know, accelerate the innovation and create amazing things for data centers going forward," he said.
Numerous corporate deals between U.S. and international companies with considerable business in China have been impeded by Chinese authorities in the past two years. The U.S. and China, the world's two largest economies, engaged in a tit-for-tat trade war until a so-called phase one trade deal cooled commerce tensions between the two countries.
Qualcomm notably abandoned a $44 billion takeover of rival NXP Semiconductors in July 2018 after running into regulatory challenges with China.
Nvidia shares climbed more than 2% to $297.08 during the session. The stock is up 26% year to date.
Disclosure: Cramer's charitable trust owns shares of Nvidia.
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