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Wednesday, May 09, 2007

Why Apple Should Acquire AMD
This is an interesting and thought provoking read. It makes sense to me.

Let’s face it. AMD is having quite a bit of financial problems in its race against Intel to grab more market share. Although AMD has done well, and I respect them for what they have accomplished considering the sheer difference in size between the top two chip makers, they need to be put out of their misery by a company that can either take AMD out of the Intel vs. AMD race or have enough capital to give it a significant boost.

To put another dent into AMD’s lackluster performance (financial and otherwise), the ATI acquisition isn’t working out too well either. ATI is behind NVIDIA in its race against to take on the graphics market. What can I say? Things just aren’t looking rosy for AMD at this point, hence my recommendation for the acquisition.

As much as I would like to recommend private equity groups for AMD’s takeover, it’s not worthwhile. I doubt they are going to add any significant value to the company (other than injecting the company with more capital perhaps) and at worst, they are just going to drive the company into more debt with acquisition fees and other such hassles. Not to mention, the semiconductor business isn’t exactly a lucrative market to be in, as the AMD scenario appropriately depicts.


Read all about it here, courtesy of cooltechzone.com

Eric

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