While companies like Hewlett-Packard (NYSE: HPQ), Intel (Nasdaq: INTC) and IBM (NYSE: IBM) have revved up their acquisitions latesly, Oracle (Nasdaq: ORCL) has been quiet. But this won’t last for long. The company has integrated its $7.5 billion deal for Sun Microsystems and also snagged the former CEO of HP, Mark Hurd.

Actually, at the latest analyst meeting, Oracle’s CEO, Larry Ellison, talked-up his acquisition strategy, and his thinking has undergone some important changes. After all, he wants to buy chip companies.

Huh? It does seem quixotic. But that’s usually the first reaction to Ellison’s pronouncements. Wasn’t Wall Street skeptical about his plans in 2005 to buy up business software companies like PeopleSoft? But of course, it has paid off. Oracle’s stock is up +60% in the past five years, while competitors like SAP (NYSE: SAP) and Microsoft (Nasdaq: MSFT) are only up +18% and +10%, respectively.

But if Oracle wants to keep-up the momentum, it will need to think different. This means essentially expanding into the hardware business.

Ellison points out that Apple (Nasdaq: AAPL) has done this successfully. While not easy to pull off, it can result in more seamless technologies and yes, more revenue opportunities.

With the Sun deal, Oracle has already delved into the hardware business. This is with the Sparc chip, which is a key part of enterprise servers. Consider that Oracle recently launched its Exadata database and cloud-computing platforms, which combine its software with Sun hardware.

OK, so what chip companies will Oracle buy? There are many top operators to choose from, including ARM Holdings, Advanced Micro Devices, Altera, Nvidia, Broadcom and Marvell. All are definitely high-quality companies.

But there are some complications. Keep in mind that Ellison says he wants a chip company for its “intellectual property.” In other words, there was no mention of having large fabrication plants (known as “fabs”). So it’s a good bet that Ellison wants a fabless chip company, that is, one that doesn’t actually make the chips. What’s more, he probably wants to focus on companies that have mostly an enterprise business.

What companies fit the profile? Take NetLogic Microsystems (Nasdaq: NETL), which develops high-speed chips to improve the performance and security of networks. As a testament to the company’s technology prowess, there are more than 400 patents in the company’s portfolio.

In the second quarter, NetLogic posted a sizzling +192% increase in revenue to $95 million (the sequential increase was +10%). A big boost came from its acquisition of RMI, which broadened the company’s product offering.

While the company is still losing money, this is to be expected for a high-growth operator. Besides, there is $201 million in the bank.

Another prospect for Oracle is Mellanox (Nasdaq: MLNX). The company develops sophisticated chips, adapters and cables that connect data centers with storage devices. The technology helps to reduce infrastructure investments, lower energy costs and improve overall performance. As a result, Mellanox has a sterling customer list that includes companies like JPMorgan (NYSE: JPM), Exxon (NYSE: XOM) and Shell (NYSE: RDS-A).

Something else: Oracle uses Mellonox products for its own storage and server products. The technology is even at the core of the Exadata offering. And yes, the financials have been stellar. In the second quarter, Mellonox saw a +58% increase in revenue, to $40 million, and net income of $5.3 million.

Basically, Mellonox is in the sweet spot of major technology trends like cloud computing, virtualization and data-center automation. No doubt, the growth ramp is likely to continue. [A New Tech Revolution Could Lead to Triple Digit Gains for These Stocks]

Action to Take –> Of the two, I think Mellonox would be the most attractive buyout target for Oracle. The companies are already key partners, and Mellonox’s technologies are mostly for the enterprise markets. And with its hefty growth rate, Oracle will need to pay a premium price. But Mellonox’s attractive fundamentals and unique technologies are likely to entice other bidders to the table. This is something that’s happened with other recent deals, such as for 3Par (which sold at a big premium). True, there still may not be a buyout. But even so, the fact remains that Mellonox should continue to be a standout player in the industry.

What about Oracle? While the stock has already made a nice move, the company has a huge slug of cash and a top-flight management team. Oracle has already proven it knows how to make deals work and is ahead of the curve for the next stage of deal making. In other words, combining its powerful software business with hardware will be key for Oracle in achieving the next stage of growth.