Feeds

Investors buy into AMD-ATI tie-up rumour?

ATI shares up as rival's dip

Beginner's guide to SSL certificates

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. ®

Remote control for virtualized desktops

More from The Register

next story
Official: European members prefer to fondle Apple iPads
Only 7 of 50 parliamentarians plump for Samsung Galaxy S
Fujitsu CTO: We'll be 3D-printing tech execs in 15 years
Fleshy techie disses network neutrality, helmet-less motorcyclists
Space Commanders rebel as Elite:Dangerous kills offline mode
Frontier cops an epic kicking in its own forums ahead of December revival
Intel's LAME DUCK mobile chips gobbled by CASH COW
Chipzilla won't have money-losing mobe unit to kick about anymore
prev story

Whitepapers

Why and how to choose the right cloud vendor
The benefits of cloud-based storage in your processes. Eliminate onsite, disk-based backup and archiving in favor of cloud-based data protection.
Getting started with customer-focused identity management
Learn why identity is a fundamental requirement to digital growth, and how without it there is no way to identify and engage customers in a meaningful way.
How to determine if cloud backup is right for your servers
Two key factors, technical feasibility and TCO economics, that backup and IT operations managers should consider when assessing cloud backup.
High Performance for All
While HPC is not new, it has traditionally been seen as a specialist area – is it now geared up to meet more mainstream requirements?
Internet Security Threat Report 2014
An overview and analysis of the year in global threat activity: identify, analyze, and provide commentary on emerging trends in the dynamic threat landscape.