Nvidia Corporation has purchased PortalPlayer, a maker of portable media player hardware, in a $357 million dollar deal. PortalPlayer makes semiconductors, firmware and software for MP3 players and portable media players and the merger could allow Nvidia to expand from its computer-based roots into the gadget space.

Jen-Hsun Huang, president and CEO of NVIDA, said, "We intend to drive the next digital revolution, where the mobile device becomes our most personal computer." Nvidia already sells some mobile chips, including the GoForce 5500 that was demonstrated at the CTIA 2006 convention in Los Angeles. You can watch a TG Daily video of the chip in action here.

Nvidia will pay $13.50 for each share of PortalPlayer common stock for a total purchase price of $357 million. The Board of Directors for both companies have approved the transaction.