Name Another Semiconductor Stock Which Can Get Bought for $7 Billion

News of chipmaker Nvidia (NVDA) buying Mellanox (MLNX) for $6.9 billion to accelerate its push into the data center looks to be more than enough of a bright spot for bulls this morning to offset the awful Boeing news and sizable gap down. 

In fact, the NVDA for MLNX is seeing shares of NVDA rally, too, which is often a particularly bullish sign as the market cheers on the acquiring firm as well as the smaller firm getting the buyout bid. As I write this, for example, NVDA is higher by nearly 5% after being rather downtrodden since late-last year.

With this in mind, the market seems to be sending a message that more M&A in the chips may be coming and would be welcome with arms wide open, in general. 

Cree is a $5.4 billion long-term turnaround play not quite in the same genre as MLNX, but a chip nonetheless with plenty of appeal due to the growth in its Wolfspeed unit. At its current market cap, I would think CREE makes another mid-cap logical buyout target. 

Buyout or no, though, the updated daily chart, below, continues to flash signs of notable improvement. I like CREE into any further strength here if the broad market retains its early gains and gathers decent momentum this week.