The deal comes as AMD snaps up a greater share of the market from Intel, which still manufactures its own chips but has struggled to match the quality of those produced by TSMC. Your California Privacy Rights For example, Rakers argues that AMD’s data center processors will meet the need for more chips that can process the large amounts of data they use. Xilinx ended November with a market capitalization of roughly $35.6 billion. Advanced Micro Devices (NASDAQ: AMD) agreed to buy Xilinx for $35 billion in stock. Chipmaker Advanced Micro Devices has bright prospects in its core businesses and from its pending acquisition of Xilinx (), a Wall Street analyst said Monday.Meanwhile, AMD stock … Terms of Use Xilinx closed at $105.99 on Thursday, giving it a market capitalization of $25.9 billion, about a quarter of AMD’s value. AMD will exchange 1.7234 shares of newly printed stock for each Xilinx share, representing a cash value per Xilinx … Both AMD and Xilinx develop processors that are used in devices such as computers, gaming systems and data centers that power internet-based services and applications. Sorry, your blog cannot share posts by email. This is despite the high valuation that AMD stock sports, which I have written about before. 1,307, This story has been shared 732 times. Xilinx stock was on track to open at the highest level seen during regular-session hours since July 2019. 732, This story has been shared 652 times. Under the deal, Xilinx shareholders will receive about 1.7 shares of AMD common stock for each share of Xilinx common stock, valuing Xilinx at $143 per share, or about 24.8% higher than its $114.55 closing price on Oct. 26. NYC eateries beg Gov. I suspect that more analysts will begin raising their price targets on AMD stock as they assimilate the benefits of the Xilinx deal. All rights reserved. quotes delayed at least 15 minutes, all others at least 20 minutes. AMD is ramping up production of its Zen-3 Epyc Milan CPUs. 2021 InvestorPlace Media, LLC. This was based on a $30 billion takeover price. In addition, he argues that this trend will continue. The article points out that data centers are essentially what is known as “the cloud” for us laypeople. The deal is now official after rumors began swirling earlier this … 652, © 2021 NYP Holdings, Inc. All Rights Reserved After weeks of speculation , AMD confirmed Tuesday that it will acquire programmable chip maker Xilinx in an all-stock deal valued at $35 billion. Xilinx, which was valued over $10B at that time, had the reputation as an industry powerhouse whereas AMD's reputation was that of a weakling. ET, the man who recommended Google before anyone else will reveal his #1 stock pick for 2021 — for FREE — ticker symbol and all — in a special presentation. 1125 N. Charles St, Baltimore, MD 21201. Two weeks later, The Wall Street Journal reported AMD had reached an agreed deal to buy a rival chipmaker, Xilinx (NASDAQ: XLNX), using AMD stock. Also known as machine learning, many large companies are already employing this technology. Privacy Notice On the stock market today, AMD stock fell 4.1% to 78.88.Xilinx stock jumped 8.6% to 124.35. Article printed from InvestorPlace Media, https://investorplace.com/2020/12/amd-stock-is-a-favorite-of-analysts-after-buying-xilinx/. “Our acquisition of Xilinx marks the next leg in our journey to establish AMD as the industry’s high performance computing leader and partner of choice for the largest and most important technology companies in the world,” AMD president and CEO Lisa Su said in a statement. The terms of the deal will give Xilinx stockholders about 1.7 AMD shares for each of their Xilinx shares. This story has been shared 1,307 times. The stock traded in the … That’s not good news for AMD, Nvidia, Intel, Arm or Xilinx. About half … But it still shows how powerful this tool is – using your highly valued shares to buy a rival that has a lower P/E ratio. As long as they love AMD, I think you can see the stock continue to move up. Post was not sent - check your email addresses! AMD Stock Falls, While Xilinx Stock Surges. Computer-chip designer AMD will buy industry peer Xilinx in a $35 billion all-stock deal, the companies announced Tuesday. I want to learn more about the financial structure of the deal, but my first pass is that AMD must be doing something right here. 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Do Not Sell My Personal Information, Your California Privacy Rights So, Rakers is one of the few who has consistently beaten the group and so investors might want to pay attention to his predictions. Advanced Micro Devices ’ $35 billion acquisition of Xilinx has upended the thesis around AMD stock, causing sellers to outnumber buyers in the … For example, Yelp (NYSE:YELP) uses machine learning to manage images, Pinterest (NYSE:PINS) uses it for content discovery, and Facebook (NASDAQ:FB) uses AI to screen out spam, etc. The companies rely on manufacturing partners — namely Taiwan Semiconductor Manufacturing Co., or TSMC — to make their products. The deal was going to be valued at $35 billion, … The rumors were true, only the price was off. By the way, Wells Fargo has the highest rating and price target among a group of 20 analysts that TipRanks follows on AMD stock. I wrote about that deal at the end of September and how Nvidia lowered its P/E ratio just like AMD has. AMD stock … The acquisition, expected to close by the end of next year, will create a combined semiconductor giant with 13,000 engineers and more than $2.7 billion in annual research and development investment, the California-based companies said. This implies a potential 25% gain in the stock if it hits that price target. Based on the exchange ratio, this represents approximately $143 per share of Xilinx common stock 2. Computer-chip designer AMD will buy industry peer Xilinx in a $35 billion all-stock deal, the companies announced Tuesday. I showed how AMD could use its high-priced stock profitably to buy a rival. AMD’s stockholders will own about 74 percent of the combined company, while Xilinx shareholders will control the other 26 percent, according to a news release. Nasdaq Moreover, he reports that AMD’s central processing units (CPUs) are more popular than CPUs from Intel (NASDAQ:INTC). As a result, AMD is gaining market share from Intel. It paid a mixture of cash and stock valued at $40 billion to buy this chip unit. The deal was going to be valued at $35 billion, so the net effective reduction in P/E ratios would be lower. AMD Agrees to Buy Xilinx for $35 Billion in Stock The deal would broaden AMD’s business into chips for markets like 5G communications and automotive electronics. Competing in the semiconductor industry is often a game of chess, placing long term bets several moves ahead that culminate for a winning strategy. Xilinx shares closed up over 8.5%. AMD shares closed more than 4% lower on Tuesday at $78.88. All rights reserved. Advanced Micro Devices (NASDAQ:AMD) keeps moving higher as analysts offer up higher price target recommendations. Your Ad Choices Therefore, as a result of this avant garde acquisition, analysts are now singing the praises of AMD stock. Xilinx’s stock, which previously soared on … Do Not Sell My Personal Information. AMD's Rumored $30 Billion Xilinx Acquisition Could Supercharge the Stock This deal could turn out to be a big catalyst in the long run. "Our acquisition of Xilinx … Sitemap AMD. The Financial Times recently wrote that this deal shows that Advanced Micro Devices (AMD) is one of the long-term winners as a chip supplier for data centers. I talked to AMD CEO Lisa Su last night and got the download on what could be a historic, $35B semiconductor deal to acquire Xilinx. Under the terms of the agreement, Xilinx stockholders will receive a fixed exchange ratio of 1.7234 shares of AMD common stock for each share of Xilinx common stock they hold at the closing of the transaction. Therefore, follow the lead of the Wells Fargo analyst, Rakers, who seems to know what’s up with AMD stock. At Thursday's close, the company had a … This will have the effect of lowering the overall P/E ratio for the combination. Copyright © 2021 InvestorPlace Media, LLC. AMD’s better-performing products have helped it capture nearly 20 percent of the market for central processor units, which has driven its stock price up 68 percent this year as of Monday. Armie Hammer’s ex Courtney Vucekovich: He wanted to 'barbecue and eat' me, It seems clear whom Urban Meyer wants as the Jaguars' quarterback, Pregnant influencer's cause of death revealed, Socialite plunges to death with baby from penthouse, Viewers say Netflix went too far in graphic series, Johnson & Johnson COVID vaccine generates immune response, Dip-coin: Watchdog warns traders could ‘lose all their money’ after Bitcoin plummet, Pfizer, CDC probing death of doctor who took COVID vaccine, Bethenny Frankel made $7,250 on her first season of ‘RHONY’, ‘Saved by the Bell’ star Dustin Diamond confirms cancer battle, Bindi Irwin recreates pregnancy photo from parents Steve and Terri, © 2021 NYP Holdings, Inc. All Rights Reserved, 'Walkable chair' makes standing on the job a lot easier, Granny argues with Alexa over dance music, Biden's big tech ties and other commentary, Visa and Plaid call off $5.3B merger citing DoJ pushback, Greenwich Village hot spot Le Figaro Café plots comeback, New York eateries struggle with outdoor dining COVID-19 anxieties, Best Valentine's Day gift baskets 2021: 23 ideas for all your Valentines, 10 at-home fitness apps on sale right now, Diane von Furstenberg takes up to 30 percent off wrap dresses, outerwear and more, Best board games for adults 2021: 32 fun games to liven up any party, Buy two floor plants for $200 during Plants.com limited-time sale, 'RHOC's' Elizabeth Lyn Vargas calls childhood cult reveal 'an odd blessing'. This article by Wordstream shows how 10 companies are using machine learning by manipulating large data sets. AMD's all-stock purchase will grant current Xilinx shareholders 1.7234 shares of AMD for each Xilinx share they own. For example, rival Nvidia (NASDAQ:NVDA) recently bought Arm Limited, the U.K. semiconductor unit of Softbank (OTCMKTS:SFTBY). Product and markets. For Xilinx’s part, president and CEO Victor Peng said the deal will help speed up the growth of its data center business and “enable us to pursue a broader customer base across more markets.” He’ll be a president in charge of the Xilinx business at the combined company, which Su will lead as CEO. Advanced Micro Devices Inc. announced Tuesday morning that it plans to acquire Xilinx Inc. in an all-stock deal valued at $35 billion, confirming … On Dec. 18, Barron’s reported that a Wells Fargo analyst, Aaron Rakers, recommended four semiconductor companies, one of which was AMD stock. The Financial Times article explains that the chips that AMD and Xilinx make, known as FPGAs, help neural networks by acting as accelerators for “deep learning.” Neural networks are necessary for artificial intelligence (AI) applications in various industries. 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