dlewis23 Posted May 31, 2006 CID Share Posted May 31, 2006 Advanced Micro Devices may be looking to buy graphics company ATI Technologies, a move that would benefit the overall graphics industry, according to RBC Capital Markets. "The synergies of this seem consistent with the recent announcements by AMD to significantly increase capacity over the next few-years," wrote analyst Apjit Walia in a note to investors Wednesday. "We believe ATI is a rare-buy in the semiconductor space right now given the near-term tie-up dynamics." Walia based his prediction on recent checks in the PC food chain. RBC has an "outperform" rating and $23 price target on ATI, and no rating on AMD. The firm expects ATI to report fiscal 2007 earnings per share of $1.06. It has long been discussed that the graphics-companies are likely to be bought by one of the microprocessor companies, according to Walia. However, for AMD-rival Intel (nasdaq: INTC - news - people ), a partnership with a graphics company may not be the best idea. "This tie-up might make sense for AMD at this juncture but we don't think Intel should pursue tying-up with graphics companies and should instead look at the communications-space," said the analyst. Walia maintained a "sector perform" rating and $21 price target on Intel, expecting more announcements of Dell (nasdaq: DELL - news - people )-AMD partnerships this year, to Intel's detriment. "The competitive dynamics of the microprocessor-market seem to be changing permanently, he said. "We believe Intel is still not 'reading-the-writing-on-the-wall' and continues to over-focus on PCs." Intel has introduced drastic price-cuts for its Celeron, Pentium-4, Pentium-D and Conroe processors, which could make the price-war "quite ugly," in Walia's opinion. Intel does seem to have gained some share-back from AMD with the price cuts, but the impact on margins is negative, the analyst said. In addition, the overall PC market continues to slow and Intel's June quarter is looking "progressively worse" with revenues down close to 10% and the September quarter tracking below seasonality, according to Walia's checks. "We turned neutral on Intel couple-of-weeks ago given our view of the risk-reward being balanced given the bad-news out there, but we remain negative on the semi-space," said the analyst. "However, this AMD-ATI tie-up would obviously be a clear-positive for the graphics space." Source: http://www.forbes.com/2006/05/31/amd-ati-technologies-0531markets10.html?partner=yahootix This could be good. Quote Link to comment Share on other sites More sharing options...
Planatoid Posted May 31, 2006 CID Share Posted May 31, 2006 Interesting. I wonder if nVidia will still make motherboards that support AMD CPUs if this happens. Quote Link to comment Share on other sites More sharing options...
dlewis23 Posted June 1, 2006 Author CID Share Posted June 1, 2006 Interesting. I wonder if nVidia will still make motherboards that support AMD CPUs if this happens. i don't think nvidia will keep making mobos for AMD if this happens. Quote Link to comment Share on other sites More sharing options...
just- Posted June 3, 2006 CID Share Posted June 3, 2006 any more news on this rumour ? Quote Link to comment Share on other sites More sharing options...
CA3LE Posted June 3, 2006 CID Share Posted June 3, 2006 That's a merger that I was expecting for the past 5 years --- ATI and AMD compliment each other well. Quote Link to comment Share on other sites More sharing options...
just- Posted June 3, 2006 CID Share Posted June 3, 2006 if this happens its going to be a big blow in the long run for intel Quote Link to comment Share on other sites More sharing options...
Swimmer Posted June 3, 2006 CID Share Posted June 3, 2006 holy cow.. that would be interesting.. So nvidia with Intel? I would have expected Nvidia to go with AMD personally.. Quote Link to comment Share on other sites More sharing options...
dlewis23 Posted June 3, 2006 Author CID Share Posted June 3, 2006 I would have expected Nvidia to go with AMD personally.. I would have expected that as well. Quote Link to comment Share on other sites More sharing options...
just- Posted June 3, 2006 CID Share Posted June 3, 2006 hummmm will stay tunned to this sounds promissing Quote Link to comment Share on other sites More sharing options...
amc11890 Posted June 4, 2006 CID Share Posted June 4, 2006 would not have expected that Quote Link to comment Share on other sites More sharing options...
Swimmer Posted June 4, 2006 CID Share Posted June 4, 2006 hummmm will stay tunned to this sounds promissing for sure.. i cant wait to see what AMD can do for ATI.. if all of this is going to happen.. Quote Link to comment Share on other sites More sharing options...
Planatoid Posted June 4, 2006 CID Share Posted June 4, 2006 I don't think an ATI+AMD vs. nVidia+Intel would be a good thing. I like being able to choose between all four. Quote Link to comment Share on other sites More sharing options...
dlewis23 Posted June 4, 2006 Author CID Share Posted June 4, 2006 I don't think an ATI+AMD vs. nVidia+Intel would be a good thing. I like being able to choose between all four. I don't think Nvidia would go to Intel. I think they will do just fine by them selves, but if they had to go and get help from anyone i think it would be IBM. Quote Link to comment Share on other sites More sharing options...
organ_shifter Posted June 4, 2006 CID Share Posted June 4, 2006 When I first read about a possible ATI merger/purchase, it was supposedly Intel who was jockeying for position. http://theinquirer.net/?article=31730 This AMD story seems much more likely indeed. As Ca3le stated, the two compliment each other so well. Quote Link to comment Share on other sites More sharing options...
cappy Posted June 5, 2006 CID Share Posted June 5, 2006 amd just wants ati memory controller.. Quote Link to comment Share on other sites More sharing options...
dlewis23 Posted June 5, 2006 Author CID Share Posted June 5, 2006 amd just wants ati memory controller.. could be, but they already have a pertty good memory controller them selves. Quote Link to comment Share on other sites More sharing options...
just- Posted June 5, 2006 CID Share Posted June 5, 2006 I don't think an ATI+AMD vs. nVidia+Intel would be a good thing. I like being able to choose between all four. i agree with you i dont think all merges are for the good of the world in this case i rather have a choice of all four Quote Link to comment Share on other sites More sharing options...
amc11890 Posted June 5, 2006 CID Share Posted June 5, 2006 I wouldn't mind if nvidia and amd merged Quote Link to comment Share on other sites More sharing options...
Roco Posted June 5, 2006 CID Share Posted June 5, 2006 I wouldn't mind if nvidia and amd merged that would be ok by me, as it is my prefered setup Quote Link to comment Share on other sites More sharing options...
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