AMD buys ATi

[phranq]

Mike just posted it, and I found it when I logged onto Google this morning at work. There has been talk about it for some time now, but to most people this should still come as a surprise. What it means? I guess it means that AMD wants to compete head to head with Intel, and expand outside of just the CPU market. I was going to post that this morning, but at work I don't have my super cool bookmarks. I figured it was big enough news that Mike or Steve would get it before I got home...

[phranq]

Take a look at what investors think as ATi's stock is up 17% (http://quote.fool.com/summary.aspx?s=atyt) as of 1pm est. Meanwhile, AMD stocks didn't fare so well, dropping by 5% (http://quote.fool.com/summary.aspx?s=amd) as of 1pm today.


The general consensus is...no one really knows (except perhaps AMD) what AMD plans to do with their new acquisition. They must be planning something if they're willing to spend over $5 billion, right?


Some people are suggesting that we might see a swap, with Intel pairing up with Nvidia (not merging, I mean Intel using Nvidia chipsets instead of ATi) and AMD using ATi chipsets. If you do a Google News search you'll get the full array of predictions from different news sites. Some will tell you that Nvidia is in trouble, and that the new bond between AMD and ATi will prove highly effective. Meanwhile, other news sites will tell you that the new AMD/ATi company will crash and burn. So what does this tell us? Yup, you guessed it, no one really knows.


Edit: Ouch, AMD has been falling the last few days over all the speculation. I feel for anyone who had AMD stock back in March...seing as your 42.70 peak is now a measly 17.50 per share. The 5% lost today is nothing compared to 20% over the weekend. So there's your chipset economics for the day.

[bLaK]

Why did AMD have to join up with ATI. I would be the first person to buy their products if they were with Nvidia. Now im starting to hate them.

Im sure they have something special planned. I think they will be looking in the mobile PC's industry.