Nvidia (NVDA) – Get report and other semiconductor companies were rising on Monday, following news of Renesas Electronics RNECY’s acquisition of DLGNF from Dialog Semiconductor and a continuing chip shortage.
Nvidia rose 6% to $ 576.35 on the last check, while Advanced Micro Devices (OMG) – Get report rose 4% and Intel (INTC) – Get report rose 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 UK-based Dialog, whose customers include Apple (AAPL) – Get report, increased 16% to $ 78.99.
“Energy management is the DNA of Dialog’s intellectual property,” said Neil Campling, an analyst at Mirabaud Securities, after the deal was announced, Reuters reported.
“As we move into a world increasingly focused on battery technology, EV vehicles and harnessing 5G’s ‘energy suction’ capabilities in the smart industrial future – energy, energy efficiency and energy management – are crucial ”, Said the analyst.
The semiconductor industry also felt the impact of the coronavirus pandemic outage as car production slowed and car sales fell.
With the reopening of auto factories, customer demand for cars has increased.
In addition, demand for chips has increased as consumers, who were not at home 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 at two factories due to the worldwide shortage of computer chips.
Other car manufacturers, including General Motors (GM) – Get report, Mazda (MZDAY) and Stellantis said they would have to cut production due to a lack of chips.
TheStreet.com founder Jim Cramer said on Friday that the chip shortage “is very real”.
“The Chinese are accumulating chips dramatically,” he said. “We messed up the supply chain surprisingly. We let Taiwan dominate, we don’t make factories here – thanks, Intel. We definitely need a new set of foundries.”