Intel Could Buy AMD as x86 Microprocessors Lose Share to ARM – Analysts

AMD’s Shares Are Up on Intel Buyout Rumour

by Anton Shilov
05/01/2013 | 10:39 PM

As media tablets and smartphones are on-track to outsell personal computers in the coming years, the significance of x86 processors, exclusively designed and made by Advanced Micro Devices and Intel Corp., is getting lower. As a result, long-rumoured Intel’s wish to buyout its only rival is getting more realistic, according to a source in the financial community. Due to the renewed acquisition rumour and AMD’s gains in consoles and low-power computers, stock of the company is growing.

 

According to a source of the Tech Trader Daily blog who could not be quoted by name, the persistent rumor that Intel will buy AMD, might suddenly be thinkable since the field of computing is now being defined more broadly than just the personal computer and the x86 micro-architecture, which means there are no more as many anti-trust issues as before. It may be unlikely that Intel and AMD are interested in consolidation just now, but as the share of devices based on ARM architecture is increasing, so are the chances that Intel and AMD could merge.

“Although the rumor is not a new one, it is in circulation again today,” the source is quoted as saying.

Both AMD and Intel have seen moderate success in media tablets and smartphones because of various reasons. As a result, sales of the two semiconductor designers are either stagnating or even decreasing these days.

The two companies have a number of unique advantages, which, if combined, could improve positions of the newly formed company. For example, AMD has unique graphics processing and heterogeneous processing intellectual property, whereas Intel has leading-edge manufacturing capacities and the world’s best manufacturing technologies.

Recently AMD scored huge wins as it has been chosen as the only supplier of custom system-on-chips for Microsoft Xbox Infinity (Xbox Next console code-named Durango) as well as Sony PlayStation 4 (code-named Orbis) video game consoles due later this year.

AMD’s stock was up 14.18% to $3.22 on May 1.

AMD and Intel did not comment on the news-story.