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AMD stock rallies as takeover talks grow

Shares in AMD have started climbing as takeover talks grow across the industry. Share value shot up roughly 8 percent wednesday afternoon, topping out at $4.46 before dropping slightly to close the day. Qualcomm and Samsung have been touted as likely candidates to take over the ailing x86 company.

Qualcomm seems a likely candidate as it could use to give them more leverage with manufacturing partners Globalfoundries and Taiwan Semiconductor Manufacturing Company (TSMC) as well as being a good opportunity to expand into more markets.

Samsung are the other candidate, although in recent times Samsung have been linked with ailing Smartphone manufacturer RIM. Samsung has already hired away several top silicon designers from AMD but a full acquisition would mean access to all of the chip maker’s patents – a sneaky upper hand to pull over Apple.

Samsung could buy AMD outright without even making a dent in their staggering cash reserves.

It wouldn’t come as a surprise fto anyone if AMD called it quits in the near future, they’ve already announced they won’t be competing with Intel any more – add to that the fact AMD is struggling to make profit, being swamped under by its debts and rapidly losing CPU market share. If anyone is going to buy AMD, now is the time to do it – before the CPU market becomes a blue horse race.

Source

Ryan Martin

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