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AMD: To merge, or not to merge


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http://www.tomshardware.com/2008/02/14/amd..._not/index.html

 

When it comes to IBM, the matter of market cap is very simple - AMD is currently valued at $3.88 billion and Nvidia goes for $13.44 billion. IBM is valued just below the $150 billion mark. Thus, AMD is pocket money for IBM, and the potential gains with AMD under IBM's wings are numerous.

 

For starters, IBM has a ton of manufacturing partnerships and is a member of a manufacturing alliance that involves AMD, IBM and Chartered from one side, and Toshiba and Sony from other. Let's not forget the fact that with AMD/ATI (or just Daamit) on-board, IBM would rule the world of video game consoles - all three consoles feature IBM processors, and the two leading consoles have ATI GPUs inside. The next generation of consoles could look much different, if IBM would have such design teams to develop complete solutions for Microsoft, Sony and Nintendo. And the market of 200-300 million consoles is very attractive.

 

There is also a small fact that AMD relocated one engineering team from Austin, TX to East Fishkill, NY - to work on a new manufacturing processes on the spot. With a lot of AMD engineers working closely side-by-side with IBM on next-gen designs, opening all secrets would create an incredibly flexible semiconductor giant that would be able to seriously cut down Intel's market share.

 

This would also propel IBM into worlds that are currently closed for the company, such as the consumer electronics segment, where ATI Imageon chips go head-to-head against STMicro, Thomson, Philips, Silicon Optix and others. The handheld market is also an interesting segment where ATI and Nvidia ship hundreds of millions of chips per annum, and we won't go into lucrative HPC deals where IBM usually competes either with its Power, Cell or Intel chips. Going all-IBM in the x86 arena would also open a new world for IBM's services, and this is what the company wants to influence. With ATI on board, IBM would enter the world of visual computing, which is set to dominate the world in decades to come (holographs, HUDs, monitors everywhere we go).

 

GPGPU also comes to mind, and this is the reason why both IBM and Nvidia would want AMD very, very badly. AMD has been quite vocal about integrating GPGPU-friendly improvements, and GPUs would gain CPU-friendly features.What speaks against an acquisition of AMD by IBM is IBM's current direction into services.

Conclusion

 

With Nvidia not having any support from partners to buy AMD, and the fact that the debt-to-equity ratio could prove deadly, Nvidia is effectively out of the running for the company. A deal could still happen, but if AMD is for sale, IBM is the logical choice.

 

As some Intel insiders have told us, this would be the move that scares Intel's leadership beyond belief. There is a saying inside Intel: "IBM is a vampire that never dies". You can give it Tom Cruise's face, but the fact of the matter is that IBM has been around the block before the block even existed.

 

A combination of IBM and AMD would leave x86 licenses safe and intact, and that is a matter of utmost importance. From another side, the manufacturing alliance should not be overlooked.

I hope IBM does buy them. Intel wouldn't stand a chance against the diversification offered by IBM, should they snatch up AMD.

Edited by brandon
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Didnt Nvidia just buy Ageia? When AMD wanted to?? :huh:

 

so, if Intel pulls an AMD, they could be behind the pace, especially if IBM buys AMD.

 

Well, AMD prices may drop, but I dont like that idea.

 

 

Im gonna start my own CPU company.

 

EK's CPU's

 

starting production 2025

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Yes, but then watch Intel swallow Nvidia.

 

And watch them get split up just like Standard Oil for being a monopoly. ;)

 

Intel will not buy nVidia any time soon, this I can guarantee. Plus, IBM is actually worth more than Intel.

Edited by brandon
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I have no doubt in my mind that very soon AMD will succeed or surpass Intel and will not be the sloughter of 5years + that AMD surpassed Intel I love both companies and have built both systems. I build systems for those economically inclined AMD systems, and they don't know the difference, because AMD systems even if they don't out bench Intel at this moment in time, do everything and them some for the average person!!!

I don't exactly care for the fact that AMD bought out ATI, which is holding them back in some way's, kind of like a monkey on your back if yas no what I mean!! :lol:

Intel and AMD are both great Companies. I think the only thing either one has to worry about is a new cpu company! HUH? Yes you heard that right! According to what i HAVE READ this is very possible in the near future! So lets all hold on to our buns and keep watching at the near future!! :b33r:

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According to the article, AMD originally had its eye on nVidia. I would have preferred AMD to buy nVidia, but ATI's GPUs were what AMD wanted, since they had plans for GPGPU, and the 7 series could NEVER compete with the X1900 series in terms of sheer processing power. FPS in a game doesn't mean squat in terms of processing power BTW. The 2900XT & 3870 series are about 30% more powerful than even the most powerful 8800 series GPU, yet they don't perform as well in games.

 

However, even though nVidia wasn't headed in the direction AMD wanted, they still had a much better product in the 8800, however, at the time, the didn't exist. Only recently has AMD been able to compete with nVidia with the release of the 3xxx series og GPUs.

 

AMD, in my opinion is the most attractive company anyone could buy right now. They aren't being investigated for anti-competition practices, they have a solid GPU & chipset offering, they have a license to make x86 clones, and they're cheap.

Edited by brandon
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According to the article, AMD originally had its eye on nVidia. I would have preferred AMD to buy nVidia, but ATI's GPUs were what AMD wanted, since they had plans for GPGPU, and the 7 series could NEVER compete with the X1900 series in terms of sheer processing power. FPS in a game doesn't mean squat in terms of processing power BTW. The 2900XT & 3870 series are about 30% more powerful than even the most powerful 8800 series GPU, yet they don't perform as well in games.

 

However, even though nVidia wasn't headed in the direction AMD wanted, they still had a much better product in the 8800, however, at the time, the didn't exist. Only recently has AMD been able to compete with nVidia with the release of the 3xxx series og GPUs.

 

AMD, in my opinion is the most attractive company anyone could buy right now. They aren't being investigated for anti-competition practices, they have a solid GPU & chipset offering, they have a license to make x86 clones, and they're cheap.

 

Haa Haa Haa :clap: Can't argue with you there Brandon!! :b33r:
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Im gonna start my own CPU company.

 

EK's CPU's

 

I think the only thing either one has to worry about is a new cpu company! HUH? Yes you heard that right! According to what i HAVE READ this is very possible in the near future!

Boy Kid, you work fast!! :clap:

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I like IBMAD. It targets the 18-25 demographic, and it's a hit with the 40-55 crowd.

 

It shows off the rebellious side that people seem so easy to be able to side with, in a sense, they can relate to it. It allows them to express their feelings towards societal norms, but through television instead.

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Actually it will be called DA-Bomb, from Da-Bomb technologies in Iran. :lol:

 

President, Chairman of the board, Ceo, and owner:

 

URL=http://img405.imageshack.us/my.php?image=207pxmahmoudahmadinejadhm5.jpg]Posted Image[/url]

Edited by OceanV47
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