Despite rumors to the contrary, there are analysts saying that nVidia will most likely not be purchased by Intel because it is "a bad fit". While from a pure competition standpoint it might help Intel secure the desktop and performance workstation market, Merril Lynch has stated that there is no real reason for Intel to pursue such an option. Intel, of course, isn't saying anything:
Craig Barret, Intel Chairman had this to say about the rumors "We treat investments and things of that sort like fine wine and we never discuss them before their time, so we don't comment on rumors of that sort." Other analysts such as Doug Freedman from American Technology Research remain skeptical over a possible Intel acquisition.
No word from nVidia, either. Considering the success nVidia has had on their own, it doesn't seem to make much sense for them either.