Rumors of Intel buying AMD are being taken very seriously...

[Centauri]

http://finance.boston.com/boston/news/read/24080944/amd_soars_on_rumors
http://blogs.marketwatch.com/thetell/2013/05/01/amd-surges-as-intel-xbox-talk-surfaces-report/
http://blogs.wsj.com/moneybeat/2013/05/01/chart-of-the-day-amd-shares-spike/

Quite a pop in two days.

I think everybody would normally dismiss the rumors as impossible because of the DoJ, but the market has changed enough that I think there's a realization that Intel gobbling up AMD wouldn't create any sort of monopoly anymore. Especially not when Intel's own grasp on the mobile market is so fleeting. So the hurdles probably aren't there anymore, or at least not to the same degree they were even just a few years ago.

If true, anybody care to speculate on what Intel might be willing to cough up for AMD?

 

[AustinInDallas]

.....not gonna happen

 

[HURRIC4NE]

that is BAAAAAAAD.

 

[Ken g6]

It would create a desktop monopoly. Practically a server monopoly too.

 

[Fox5]

Could happen. AMD spun off their fabs, so they compete less directly with Intel. On top of that, AMD is bordering on irrelevant.

Intel wouldn't have much to gain from AMD's cpu side, but even at $2 billion, AMD would be a steal for purchasing ATI's tech, and eliminating a competitor. Intel's market share in mobile and HPC will likely be greatly eroded before they good enough in house graphics tech to take on the strong performers in those markets.

 

[blastingcap]

See this is why I dislike shorting companies, some dumb rumor comes along and insta-short squeeze. If there's truth to the rumor it just gets worse.

Sold my INTC stock recently. Maybe I should have held, considering that they may get even more pricing power.

 

[parvadomus]

This wont happen. But if it would, prepare to say bye bye to Nvidia in the process too.

 

[Centauri]

...but even at $2 billion, AMD would be a steal for purchasing ATI's tech, and eliminating a competitor.

Intel would never get AMD for anywhere near $2bn. Hell, they're worth $2.3bn tonight. AMD shareholders would probably scoff at anything below $4bn.

 

[jpiniero]

Not buying it. I don't know what Intel would do about AMD's $2B+ debt. I suppose Intel could try to frame the deal in such a way to screw over GloFo/the debt holders, but they would surely fight it in court and that could only increase the cost.

OTOH, some deal where AMD agrees to drop x86 at some point (which AMD would get $$$ plus protection for the consoles) I could see.

 

[mrmt]

Intel would never get AMD for anywhere near $2bn. Hell, they're worth $2.3bn tonight. AMD shareholders would probably scoff at anything below $4bn.

Would they? Would they cling to their ailing CPU lines until the WSA eat whatever value AMD still has?

 

[alcoholbob]

Nvidia would be in major trouble considering Intel is a node shrink ahead of TSMC...imagine Radeon cards consistently 1 node shrink ahead of Nvidia. dat profit margin

It might mean a permanent $1000 price class for top end GPUs (since it fits Intel's Extreme lineup style) but at least they'd be a better value than the GTX Titan since IntelAMD would be so far ahead

 

[AnandThenMan]

I've talked to a couple of people who claim this rumour has some validity. It would not surprise me, AMD's APU concept is about to mature in a big way, Intel is no doubt concerned. What better way than to just outright purchase AMD, it makes a whole lot of sense.

 

[Phynaz]

Nvidia would be in major trouble considering Intel is a node shrink ahead of TSMC...imagine Radeon cards consistently 1 node shrink ahead of Nvidia. dat profit margin

It might mean a permanent $1000 price class for top end GPUs (since it fits Intel's Extreme lineup style) but at least they'd be a better value than the Titan.

I'd bet Intel would fold up the discreet GPU business.

 

[AnandThenMan]

I'd bet Intel would fold up the discreet GPU business.

Not a chance. Basically the same tech that we get on the desktop also goes into the professional market, a highly profitable place to be. Intel is not stupid, they would do no such thing.

 

[Centauri]

Not buying it. I don't know what Intel would do about AMD's $2B+ debt.

$2bn is a lot of burden to AMD. Intel, on the other hand, pocketed $2bn last quarter.

 

[VirtualLarry]

I've talked to a couple of people who claim this rumour has some validity. It would not surprise me, AMD's APU concept is about to mature in a big way, Intel is no doubt concerned. What better way than to just outright purchase AMD, it makes a whole lot of sense.

What with the console wins, and the HSA "secret sauce", there might be some truth to that.

 

[Phynaz]

Not a chance. Basically the same tech that we get on the desktop also goes into the professional market, a highly profitable place to be. Intel is not stupid, they would do no such thing.

Intel also isn't interested in expending the energy to make a few tens of millions of dollars in profit in a shrinking market.

 

[TuxDave]

I've talked to a couple of people who claim this rumour has some validity. It would not surprise me, AMD's APU concept is about to mature in a big way, Intel is no doubt concerned. What better way than to just outright purchase AMD, it makes a whole lot of sense.

And how accurate are the people claiming validity?

 

[Arkadrel]

Intel buying AMD would break nvidia.

 

[frozentundra123456]

What with the console wins, and the HSA "secret sauce", there might be some truth to that.

I dont think Intel is particularly concerned about the console wins, it is a drop in the bucket compared to server/enterprise markets. And no one really knows how much magic the "secret sauce" will ever provide. You could make outrageous claims for AVX and all the new instruction sets in Haswell too, but until I see the software in use and real performance figures, I am skeptical of both.

I am sure that Intel would like to have access to the graphics tech that AMD has though, especially for low power devices.

Personally I dont think it will ever happen.

 

[Centauri]

Intel buying AMD would break nvidia.

I'm actually surprised nVidia never took a shot when AMD's stock was in free fall last year.

 

[Sleepingforest]

$2bn is a lot of burden to AMD. Intel, on the other hand, pocketed $2bn last quarter.

I'm more interested in how Intel would deal with GloFo if Intel did buy AMD.

 

[BallaTheFeared]

Why buy what will most likely die?

They've already got Nvidia tech in their iGPU, what good would owning AMD bring them?

They don't compete in Server, Desktop, or really even Mobile for CPU's, and Knight's Corner is a better product than Tahiti for workstations.


I don't see the gain in Intel purchasing a company running itself into the ground, it's not like they need or probably even want any of the tech AMD currently holds.

 

[Blandge]

Why buy what will most likely die?

They've already got Nvidia tech in their iGPU, what good would owning AMD bring them?

They don't compete in Server, Desktop, or really even Mobile for CPU's, and Knight's Corner is a better product than Tahiti for workstations.


I don't see the gain in Intel purchasing a company running itself into the ground, it's not like they need or probably even want any of the tech AMD currently holds.

I see it as defensive rather than offensive.

 

[Imouto]

Lemme play too!

It's not Intel, it's Samsung trying to buy it!