Feeds

Investors buy into AMD-ATI tie-up rumour?

ATI shares up as rival's dip

Build a business case: developing custom apps

Is ATI about to be acquired by AMD? You might well think so looking at the graphics chip company's share price in early Nasdaq trading today - and that of its arch-rival, Nvidia.

ATI shares opened at $16.22 after closing yesterday at $15.77 - a jump of 45 cents. Relatively heavy trading subsequently lifted it to $16.55. Nvidia's stock, by contrast, opened well below it closing price of $19.93 at $18.18, a fall of $1.75. Early morning trading saw NVDA shares traded for as little as $17.87.

AMD's stock opened at $19.34, down from $21.57 at close of play yesterday. A sign of the market's uncertainty about the upside for the company should it buy ATI? More likely a reaction to last night's Q2 earnings announcement, which saw big year-on-year gains but were down on the previous quarter's figures.

It's certainly possible to read into the figures expectation of an ATI-AMD marriage. ATI's shares are rising in anticipation of an acquisition, while rival Nvidia's are falling because of the impact such a deal might have on the company, which as close ties to AMD.

The AMD-ATI tie-in was first mooted by RBC Capital Markets analyst Apjit Walia at the end of May. He didn't offer any evidence for the suggested deal, he simply highlighted the synergies between the two firms given AMD's stated goal to increase production.

Then earlier this month, one Chinese-language site claimed the two firms had agreed the terms of the deal and were preparing their statements to the market - presumably timed to appear after AMD published its Q2 figures which, of course, it now has. It was alleged today by The Inquirer that AMD and ATI will announce their plan to merge on Monday. ®

The essential guide to IT transformation

More from The Register

next story
Reg man looks through a Glass, darkly: Google's toy ploy or killer tech specs?
Tip: Put the shades on and you'll look less of a spanner
So, Apple won't sell cheap kit? Prepare the iOS garden wall WRECKING BALL
It can throw the low cost race if it looks to the cloud
One step closer to ROBOT BUTLERS: Dyson flashes vid of VACUUM SUCKER bot
Latest cleaner available for world+dog in September
Samsung Gear S: Quick, LAUNCH IT – before Apple straps on iWatch
Full specs for wrist-mounted device here ... but who'll buy it?
Apple promises to lift Curse of the Drained iPhone 5 Battery
Have you tried turning it off and...? Never mind, here's a replacement
Now that's FIRE WIRE: HP recalls 6 MILLION burn-risk laptop cables
Right in the middle of Burning Mains Man week
Apple's iWatch? They cannae do it ... they don't have the POWER
Analyst predicts fanbois will have to wait until next year
HUGE iPAD? Maybe. HUGE ADVERTS? That's for SURE
Noo! Hand not big enough! Don't look at meee!
AMD unveils 'single purpose' graphics card for PC gamers and NO ONE else
Chip maker claims the Radeon R9 285 is 'best in its class'
prev story

Whitepapers

Top 10 endpoint backup mistakes
Avoid the ten endpoint backup mistakes to ensure that your critical corporate data is protected and end user productivity is improved.
Implementing global e-invoicing with guaranteed legal certainty
Explaining the role local tax compliance plays in successful supply chain management and e-business and how leading global brands are addressing this.
Backing up distributed data
Eliminating the redundant use of bandwidth and storage capacity and application consolidation in the modern data center.
The essential guide to IT transformation
ServiceNow discusses three IT transformations that can help CIOs automate IT services to transform IT and the enterprise
Next gen security for virtualised datacentres
Legacy security solutions are inefficient due to the architectural differences between physical and virtual environments.