AMD might consider a merger with ATI

AMD might consider a merger with ATI

Advanced Micro Devices is rumored to be considering acquiring graphics company ATI Technologies. Market analysts are in favor of such a deal and believe that it would benefit the overall graphics industry.

Market analyst Apjit Walia wrote in a note sent to their investors: “The synergies of this seem consistent with the recent announcements by AMD to significantly increase capacity over the next few-years.”

He added: “We believe ATI is a rare-buy in the semiconductor space right now given the near-term tie-up dynamics.”

He also added a similar deal won’t make as much sense for the market leaders Intel. Walia further went on to say: “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. However, this AMD-ATI tie-up would obviously be a clear-positive for the graphics space.”