Naturally, after reading this article I jumped over to check ARM's stock data and all I can say is that even though an acquisition may be good for business, ARM isn't exactly a healthy choice for investors.
As of April 29, 2011, ARM has a P/E ratio of 104.50 (!!!), which is huge especially when comparing it to similar chip-producing companies - Nvidia 45.40, Texas Instruments 13.40, Qualcomm 25.00.
This is a huge indication that ARM's stock is over-inflated and is soon due for a massive correction.
Around the time when NVidia settled with Intel and officially dropped all future work on the Intel/AMD chipset business and when the rumors were coming out about NVidia and "Project Denver" (before the official project's announcement) I thought NVidia would merge/buyout ARM just to get back at AMD and Intel for stepping on their turf.
Good piece, Wolfgang. An AMD-ARM union would be fascinating and surely constitute the biggest competitive threat to Intel in years. There are some serious obstacles, though. Can you imagine how Nvidia would react, having invested heavily in ARM architecture for both Tegra and Project Denver, if its chief graphics rival suddenly owned ARM? Even though AMD and Nvidia just struck a deal to make SLI chipsets for AMD, I don't think these two are going to get THAT cozy.
Even if there's no acquisition from one to the other, what Mr. Gruener's sources say is true, ARM + AMD is one big power house if you think that what ARM is lacking atm is a lil' more graphics juice (there's still no full profile h264 decoding at 1080p that I know of). Fusion is one hell of a proof concept that turned out really profitable and AMD has to expand it's market, and there's where ARM comes in so darn handy. Intel should be scared about it IMO. Their Itanium RISC-steal arch should be moved into the mobile arena instead of the x86 "power hog".
The future seems weirdly positive for AMD and its surroundings IMO. Hope ARM and AMD develop together something interesting for us to see in the near future.
Next time, try researching before you write such a silly article.
ARM does NOT manufacturer chips. They sell/license IP for their architecture. Companies such as Marvell, Samsung, NVidia, TI, Qualcomm, etc manufacturer.
AMD could not possibly afford to purchase ARM. Even if they could, then what? I don't believe that ARM is allowed to compete against the companies who they license their IP to. AMD would just have a larger IP base, and some more income to sink into their declining x86 business. Maybe they could bankrupt ARM while they're at it.....
this has to be one of the stupidest articles i have ever read.
does anyone do any f'n research anymore. ARMH is worth 2.5 times more than AMD is. Even if some bank was willing to finance AMD, they would be paying interest on those loans for infinity. In fact financially it would make more sense for ARM to buy out AMD, but then why would ARMH want buy a 2nd place AMD when ARM is the new Intel. Duh...
I have been saying for months now that ARM is going to be the new force in processors, the scalability of the platform and its inherent advantages in power consumption are a threat to x86 in the desktop and server market. If AMD does not buy ARM next year or the year after it will be Arm acquiring AMD.
Since when do pipe dreams make good articles on here? ARM Holdings has a market cap of almost $14B (That's $14,000M) and AMD's total assets are about $3.5B of which only $606M is cash. How exactly does AMD come up with the other $10B when they are already loaded with debt?