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AMD plans another purchase?
As you know, in the fall of 2021, AMD acquired one of the largest manufacturers of graphics solutions, ATI. Analysts still disagree on the feasibility of this grand deal – some see it as the reason for all of AMD’s latest embarrassment. However, the company is confident in the correctness of the decision taken, although they admit that they overpaid. Moreover, according to AMD expert Doug Freeman of American Technology Research, AMD has already chosen a target for another takeover. By the way, we recall that it was Freeman who recently suggested that AMD itself could soon become the subject of purchase by NVIDIA.
This time, an expert haunted by AMD’s fate has warned its customers that AMD is preparing to acquire at least one more GPU manufacturer. The name of the company was not disclosed, but there are not many options. In favor of the fact that the company is preparing to make another purchase, there are several facts.
First, difficulties with the release of the latest processor models worsened the company’s position in this market, while the division engaged in the production of graphics processors, if it does not have a clear advantage over its competitors, is at least not inferior to them. It is logical in such conditions to develop success in the most promising direction.
Secondly, having seized the hands of all manufacturers of graphics solutions, AMD would complicate the life of its main competitor, which, as you know, plans to rely on the resource of the creators of graphics processors in the development of powerful accelerators (the Larrabee project), which should compete with AMD Fusion.
It remains to answer the age-old question: where to get the money? It’s no secret that AMD has not yet regained consciousness after buying ATI. According to the analyst, the financial part of the deal will be taken over by IBM, a long-time partner of AMD. This, incidentally, is the third argument in favor of the acquisition: IBM needs to invest, but it is unlikely to want to buy a graphics manufacturer on its own – for a company whose strategy in recent years has been based on the transition from hardware production to software supply and maintenance, such a step looks like illogical.
By the way, according to some sources, the official announcement of the deal may sound today, April 1.
Source: American Technology Research