You missed this apparently.Very bad idea. Just when AMD shows signs of surpassing Intel on the all-round performance scale, they are considering taking on more debt? What will this do to their R&D budget?
The landscape is littered with the remains of companies that went "a bridge too far".
Consolidate your position first AMD and then maybe look to expand.
Note: Broden its attack? Broden?
The WSJ reports that AMD will likely leverage its high stock valuation, it now has a $100 billion market cap, as currency to purchase Xilinx.
You missed this apparently.
Yeah this is maybe even worse than making actual debt...The WSJ reports that AMD will likely leverage its high stock valuation, it now has a $100 billion market cap, as currency to purchase Xilinx.
Thats actually exactaly what they should do. Consumer CPUs and GPUs along with entry level server/HPC is not nearly as profitable as HPC specific products. Intel makes vastly better margins with their FPGAs than they do with their consumer CPUs.idk if they should be blowing 30B when they finally are getting a stash of $.
Intel bought Altera.Very bad idea. Just when AMD shows signs of surpassing Intel on the all-round performance scale, they are considering taking on more debt? What will this do to their R&D budget?
Why would AMD do this then? It seems weird to me.AMDs total assets are around 6.6bil if they do that it's goodbye for AMD, so it's a good thing it's basically impossible for them, they would need to make like 25bil debt, they wouldn't survive that.
And that's just to acquire them,xilinx is in pretty bad shape themselves with about 3bil in liabilities against them.
Also xilinx total assets are about 5.4 bil so paying 30 bil for them is utopian to not say completely stupid.
Huh?! In 2006 AMD payed more than they owned to buy ATI, which resulted in AMD being in the slums until..still,they are just about to pay off the debts from back then,or at least they were on the last quarterly report they might have crossed the line by now.Intel bought Altera.
Nvidia bought Mellanox.
What do you think would happen if AMD decided to pass on Xilinx which is one of the few remaining companies out there with a portfolio of ultra-high-speed interconnect stuff? AMD would end up falling behind in datacenter, AI, supercomputers and a bunch of other far more lucrative markets than PC and dual-socket servers.
AMD buying Xilinx is practically necessary if it does not want to repeat 2006.
AMD isn't putting an IGP into all of its CPUs because it cannot afford wasting wafer space on IGPs most people buying CPUs above entry-level won't be using.AMD showed incredible incompetence in integrating Ati and their technology into their own, they took longer than intel did starting from zero and they still can't put an iGPU into all of their CPUs.
Yea this is a good purcahse although they will be behind a bit of the others.AMD isn't putting an IGP into all of its CPUs because it cannot afford wasting wafer space on IGPs most people buying CPUs above entry-level won't be using.
And my 2006 comment was with regards to AMD getting blown out of the water by Core 2, not the ATI purchase, didn't remember that both of those things happened in the same year. In any case, with more of the big money in computers moving to datacenters, AI and supercomputers, AMD would risk getting left out if it did not have its own datacenter-AI-HPC infrastructure. Imagine AMD avoiding bankruptcy only to almost completely lose out on the fastest-growing highest-margins computing market segments and ultimately fail all over again.