Wednesday, April 23, 2014
Search
  
Submit your own News for
inclusion in our Site.
Click here...
Breaking News
AT&T Partners With Chernin In Video Venture
Pioneer BDP-170 Blu-ray Disc Player Comes With Wi-Fi, Miracast And Youtube Connectivity
LG's G Watch is Water Resistant
Micron Releases New Solid State Drive For Data Centers
Toshiba Joins GLOBALSOLUTIONS Ecosystem
Apple Is Eyes The Electronic Payments Market
G.Skill Launches 32GB DDR3L-2133 1.35V SO-DIMM Memory Kit
Apple Makes Progress on Reducing Environmental Impact
Active Discussions
help questions structure DVDR
Made video, won't play back easily
Questions durability monitor LCD
Questions fungus CD/DVD Media, Some expert engineer in optical media can help me?
CD, DVD and Blu-ray burning for Android in development
IBM supercharges Power servers with graphics chips
Werner Vogels: four cloud computing trends for 2014
Video editing software.
 Home > News > General Computing > Forbes:...
Last 7 Days News : SU MO TU WE TH FR SA All News

Wednesday, May 31, 2006
Forbes: AMD-ATI Merger Looks Likely!


AMD 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, 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-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."


Previous
Next
Google has no plan for its own Web browser: CEO        All News        CinemaNow to Offer Movies from Buena Vista, Warner Bros for Download-To-Own
Google has no plan for its own Web browser: CEO     General Computing News      CinemaNow to Offer Movies from Buena Vista, Warner Bros for Download-To-Own

Source Link Get RSS feed Easy Print E-Mail this Message

Related News
AMD Updates Its "Never Settle Forever" Program
Console Sales Lift AMD's First Quarter Results
AMD Demonstrates Next-Gen x86 APU Running Fedora Linux
AMD Introduces New Socketed AMD Sempron and AMD Athlon APUs
AMD Launches The Radeon R9 295X2 Graphics Card
Sony To Preview PlayStation Mobile Content Development Environment
AMD Launches New FirePro W9100 Graphics Card
AMD Teases With New "Secret" Briefcase
AMD Amends Wafer Supply Agreement With GLOBALFOUNDRIES
Imagination Debuts New MIPS-based Platform For Wearables
AMD To Release New FirePro W9100 Graphics Card Soon
AMD And Nvidia Strike New Game Partnerships

Most Popular News
 
Home | News | All News | Reviews | Articles | Guides | Download | Expert Area | Forum | Site Info
Site best viewed at 1024x768+ - CDRINFO.COM 1998-2014 - All rights reserved -
Privacy policy - Contact Us .