AMD could announce the acquisition of competitor chip maker Xilinx as early as next week, the Wall Street Journal reported, citing sources. Talks are advanced but might still fall through, the sources added.
The WSJ calculates AMD’s market value at over USD 100 billion after its shares soared 89 percent this year amid demand driven by the coronavirus pandemic for PCs, gaming consoles and other devices that use the company’s chips. Revenues for the second-quarter lifted 26 percent to USD 1.93 billion while the net profit rose quadruple to USD 157 million on the back of record notebook and server-processor sales. Xilinx has a market value of about USD 26 billion, with its shares up about 9 percent so far this year.
With a typical takeover premium, a deal would value the company at more than USD 30 billion.
