Saturday, May 26, 2018
Search
  
Submit your own News for
inclusion in our Site.
Click here...
Breaking News
FBI Says Reboot Your Router to Stop Malware Infecting 500k Devices
ASUS Chromebox 3 Series Coming in July
U.S. to Impose Fine, New Management to ZTE to Keep it in Business
Facebook Keeps Working on In-house Chip Designs
AMD Increased GPU Market Share in Q1
Seagate's New VR Power Drive Adds Capacity and Extends Battery Life of the HTC VIVE Focus VR Headset
Samsung Should Pay Apple $539 million in Patent Retrial
Amazon Admits Alexa Eavesdropped and Shared Conversation
Active Discussions
Which of these DVD media are the best, most durable?
How to back up a PS2 DL game
Copy a protected DVD?
roxio issues with xp pro
Help make DVDInfoPro better with dvdinfomantis!!!
menu making
Optiarc AD-7260S review
cdrw trouble
 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 Increased GPU Market Share in Q1
Enmotus FuzeDrive Performance Benchmarks
New AMD Ryzen PRO Processors featured in Dell Latitude, HP Elite, and Lenovo Think Designs
AMD to start Sampling 7nm Instinct GPUs This Year
AMD Zen CPU Architect Jim Keller Joins Intel
AMD's Revenue increased 40 Percent year-over-year
2nd Generation AMD Ryzen Desktop Processors Arrive to Offer Great Value
2nd Generation AMD Ryzen Processors Available April 19
AMD's Radeon RX 500X Series Is Nothing Than Rebranded Older RX 500 Cards
AMD Releases new Spectre Updates
PlayStation VR Now Available at $299.99
AMD to Fix 13 processors Vulnerabilities Reported by CTS Labs Research

Most Popular News
 
Home | News | All News | Reviews | Articles | Guides | Download | Expert Area | Forum | Site Info
Site best viewed at 1024x768+ - CDRINFO.COM 1998-2018 - All rights reserved -
Privacy policy - Contact Us .