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Tuesday, June 6, 2006
 
AMD to Buy ATI?
8:33 AM | Eddie Park | 6 comments

In an interesting bit of speculation, Forbes.com has posted an article noting a prediction that processor maker AMD may be looking into the idea of purchasing graphics chip maker ATI. The prediction, made by analyst Apjit Walia, is based on recent stock performances as well as the long-running idea that processor makers would eventually start looking to merge with graphics chip makers.

"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."
Interestingly enough, Walia believes such a move would not be in rival Intel's best interest, citing an over-focus in the PC market and not enough interest in areas such as communications.

Folks getting ready to panic or cheer should remind themselves that the above information is just a prediction by a noted tech market analyst at RBC. However, it should also be noted that such predictions typically aren't plucked out of thin air, so the possibility is worth considering. From a Mac standpoint, it would be interesting to see the impact, if any, such a move would have on Apple's current lineup of machines, in which ATI GPUs are mostly a standard feature.

Forbes.com - AMD-ATI Merger Looks Likely
ATI


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