AMD’s share value recently grew by a respectable 14.2% to $3.22 USD, prompting numerous discussions as well as speculations. Among the most interesting involve a rumor that has been going on for a while: the possibility of AMD eventually merging with rival chip manufacturer Intel.
In light of the recent series of industry-related developments, more and more observers are coming to view the Intel-AMD partnership as an increasingly likely outcome. According to sources close to Tech Trader Daily, the general field of computing is now defined so “broadly” that antitrust issues have become less of a concern; this supposedly strengthens the incentives for companies to pursue more partnerships/consolidation opportunities, which in turn make Intel’s takeover a relatively obstacle-free process. Xbitlab’s Anton Shilov, agreeing with the general opinion about the Intel-AMD merger, cites factors such as the growing irrelevance of the x86 microprocessors, Intel’s increasing need for new kinds of technologies, and AMD’s ability to benefit from Intel’s manufacturing capability as the major reasons why the two companies should–and will–eventually seek each other out.
Aside from the Intel buyout, various other interesting reasons have been brought up to explain the recently spiked AMD stock prices, including:
- The use of AMD’s chip by Microsoft’s upcoming Xbox Infinity and Sony’s Playstation 4. (AMD will reportedly serve as an exclusive system-on-chip provider for the above two companies’ gaming consoles.)
- Acer’s recent decision to equip AMD’s new “Temash” processor in its new line of notebook and PC devices.
- The revived shareholder confidence in AMD following the company’s announcement of its narrowed first quarter loss and prediction of a possible 5% growth in total revenue.
- The 20% short interest in AMD, as noted by Tech Trader Daily
Intel’s stock value, as an interesting side note, jumped the same day that AMD’s did, although at a less significant rate. As of now, neither company has offered any official comment on the recently re-invigorated merger rumor.