You definitely shouldn’t trust everything you hear and even more so, everything you read online and the recent MediaTek, Nvidia merger rumor is a prime example of exactly what can happen otherwise. The speculation was quickly debunked MediaTek, but apparently, not before the memo reached the Taiwan Stock Exchange. The implications of such a merger could potentially be huge for the entire industry, and stock brokers reacted quicker than just about everyone else.
This is most-probably why the chip maker decided to post a filing with the said stock exchange, explaining that it is not considering any such deal with Nvidia and is not the source of the rumor, originally reported by Economic Daily News. That is some pretty official explaining that MediaTek was forced to do.
As the original story goes, Mediatek was looking to expand to new markets – namely car manufacturers, to which it would offer high-priced chips and solutions. Nvidia comes into play because of its existing connections with Audi, Volkswagen and Skoda, viewed as a potential kickstart into the new realm. The story sounded unplausible to begin with, but apparently gathered enough momentum to at least scare a few brokers.