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AMD on the road to recovery.

NinjaCool said:
AMD gets all necessary approvals for acquisition of Xilinx
https://ir.amd.com/news-events/pres...receives-all-necessary-approvals-for-proposed

"All conditions to the transaction closing have been satisfied and the company expects the transaction to close on or about February 14, 2022v"
Just in time for Valentine's day :p
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This is going to be a huge boost for AMD, this $4 Billion revenue will be added to AMD's balance sheet, which if it was adeded to 2021 would have resulted in $20.5 Billion.

Chip designers in perspective year 2021.

#1 Samsung: $81.3 Billion
#2 Intel: $79 Billion
#3 SK Hynix: 37.1 Billion
#4 Micron: $30 Billion
#5 Qualcomm: $29.2 Billion
#6 Nvidia: $26 Billion (i got that wrong earlier)
#7 Broadcom: $20.9 Billion
#8 Advanced Micro Devices: $20.5 Billion (+ Xilinx)
#- Texas Instruments: $18.3 Billion
#- MediaTech: $17.7 Billion
#10 Advanced Micro Devices: $16.4 Billion (Actual)
#- Apple: $15.1 Billion
#- Infineon: $13.5 Billion
#- Kioxia: $13.4 Billion
#- ST: 12.8 Billion
#- NXP $11 Billion

But more importantly Xilinx have a lot of IP that is widely used in the industry, together with AMD's IP they can make products that can much more effectively take market share from Intel, this is why AMD wanted Xilinx, can't wait to see what they cook up together.
 
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I should add Samsung will be using AMD's IP in their chips starting this year, i think they are already in production.

So that $80+ Billion Samsung are raking in; AMD will be getting a slice of that, all be it a very very small fraction.
 
I hope you realise that you can’t just take into account the £4b extra revenue and ignore all the share capital that they issued to pay for it. Mergers have an impact and it’s not always positive.

That share capital would have also been at a premium to what Xilinx was actually worth, E.g. they got more in AMD shares than their Xilinx were worth. That dilutes existing shareholders capital and the return they get on their investment. It also increases the cost of capital for AMD as they now have more shareholders they have to provide a return for.

For the merger to actually grow the combined company, they will need to either cut costs from functions they no longer need to duplicate or make new products that were not possible before. In reality both need to happen.

Im not saying saying this acquisition is bad, I’m just saying you’ll not actually know if the premium they paid for the company was actually worth it for a long time. Lots of mergers go very wrong or end up being really poor value in the long run.

Likewise generally speaking, consolidation is bad, particularly in the tech space and particularly for consumers.
 
To be honest I’d rather Intel were cut down a few pegs, AMD stay where they are and a space made for a 3rd or even 4th competitor in this space. That will really get the competitive edges flowing.

It probably needs Microsoft to pull their finger out and get some of that Apple Rosetta magic into Windows though as I can’t see that happening on X86, that door is well and truly closed.
 
b0rn2sk8 said:
To be honest I’d rather Intel were cut down a few pegs, AMD stay where they are and a space made for a 3rd or even 4th competitor in this space. That will really get the competitive edges flowing.

It probably needs Microsoft to pull their finger out and get some of that Apple Rosetta magic into Windows though as I can’t see that happening on X86, that door is well and truly closed.
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There are other X86 Licence holders.
 
Its done.

  • Advanced Micro Devices (NASDAQ:AMD) said on Monday that it had completed its acquisition of Xilinx, adding that its Chief Executive, Dr. Lisa Su, would be the new chairman of the board.
  • In addition, John Caldwell, who joined the AMD board in 2006, will become its lead independent director.
  • At the close, Xilinx shareholders received 1.7234 shares of AMD common stock and cash in lieu of fractional AMD shares. Xilinx is now no longer listed on the NASDAQ.
  • AMD shares were up nearly 4% to $117.46 in early trading on Monday.
  • The company also announced that former Xilinx board members, Jon Olson and Elizabeth Vanderslice, will join the AMD board.
  • Wedbush Securities analyst Matt Bryson recently said AMD's fourth-quarter results and guidance show a company that provided "zero red flags" for investors and is staving off its top rival, Intel (NASDAQ:INTC).
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https://seekingalpha.com/news/37995...tes-xilinx-acquisition-adds-new-board-members
 
AMD's market cap surpasses Intel for the first time in history! :eek:
https://www.tomshardware.com/news/amds-market-cap-surpasses-intel

Thanks to AMD purchase of Xilinx, they have managed to surpass Intel for the first time ever with a ~$197.75 billion market cap compared to Intel's $197.24 billion on February 15.
And all this from a company close to bankruptcy some 6 years ago until their Zen CPU microarchitecture arrived on the scene.
 
Grim5 said:
AMD is now bigger than Intel

we've come full circle, Intel is now the underdog of the industry
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I wonder if the graphics division will ever overtake Nvidia.

It would feel pretty weird to see Nvidia as the budget graphics card option lol.

Intel used to be an automatic choice for CPU’s just a few years ago. 8700k was the last intel cpu I had and amd wasn’t even a consideration.

It still feels like that with regards to graphics card. I don’t even look at amd really, but that could change…
 
In any case Market value is not so much based on revenue as it is what people think the company will grow into, what they get long term in return for their investment.

Nvidia are valued higher than AMD and Intel put together on revenues of $26 Billion, because they have continuous growth and a high confidence among investors that they are going to be a much larger company in the future.

Intel are very depressed, they are losing market share to every competitor, their product roadmap is uninspiring, Pat Gelsinger keeps popping up #### talking AMD and how they are now in the rear view mirror and then having to walk back that arrogance when people point at AMD's up coming Genoa and Bergamo CPU's and asking "are you sure, Pat?"
Its not a good look, Intel's margins are down from 65% in 2017 to 53% now, i just watched Ian Cutress interview an industry expert who pointed out Intel have pretty much admitted they are not actually going to make any real money over the next couple of years.

AMD are very much resurgent, taking market share from Intel or forcing them to give away margins to keep it, thier revenue is growing by an average of 30% annually, AMD's revenues are forecast to be $21 Billion at the close of this year, up from $16.4 Billion, their margins are growing, currently at 50%, they will probably over take Intel's margins this year, they are constantly expanding and then growing in new markets.
 
humbug said:
This, very much so, there was talk of AMD using Samsung, GloFo and TSMC simultaneously going forward.
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Not really feasible when there's such a large gap between TSMC and others. You'd have to design your uarch/chips for the worst fab you want to use, it takes away a big advantage that AMD has over Intel. This is also the case in mobile chips right now, ARM can't design cores that would require N5, they have to design it to be built on worse nodes, so even when Mediatek can secure N5 they're not getting the full benefit as they're using uarchs/chips designed for worse nodes.

There's so much competition for TSMC's wafers right now and AMD not being as cash-rich as some of their competitors has definitely limited their bidding power. With Qualcomm planning to come back to TSMC things might get even more difficult. But things can change as AMD just got another credit rating bump (to A-/A3) which should help them raising funds allowing them to at least outbid the likes of Qualcomm and Mediatek.

humbug said:
At this point AMD could afford to buy their old foundry, Gloadbal Foundries (GloFo) back.

Probably not a good idea tho.
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No thanks :D
 
GloFo should be left where it is, they missed an opportunity to make some quick cash by stopping Polaris too early, it would have sold like crazy during the pandemic.
 
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