NVDA NVIDIA Corporation

By Asa Fitch

Graphics chip-making giant Nvidia Corp. says the rout in share prices driven by concerns over the novel coronavirus pandemic could throw up attractive prospects for acquisitions.

"There may be an opportunity for us to make some investments just back into our overall business or from an overall M&A piece," Nvidia Chief Financial Officer Colette Kress said on an investor call Tuesday, without identifying potential acquisition targets.

Nvidia is managing through the crisis with a strong balance sheet, she said, and more than $11 billion in cash. Nvidia cut its revenue guidance range by $100 million for the current quarter to account for the crisis, but is seeing some upside as people buy more laptops that contain its chips and spend more time playing PC games that benefit from the graphics processing power it delivers.

The company last year launched its largest deal, the roughly $7 billion purchase of Mellanox Technologies Ltd. The transaction has yet to close amid slow regulator approval, but Ms. Kress said it should be completed before mid-year.

Write to Asa Fitch at Asa.Fitch@WSJ.com

(END) Dow Jones Newswires

March 24, 2020 15:07 ET (19:07 GMT)

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