Topic: How To Invest

Spinoffs & Takeovers Hotline – Friday, October 16, 2020

Article Excerpt

ADVANCED MICRO DEVICES INC., $83.17, (symbol AMD on Nasdaq), is a global computer chip company whose microprocessors are included in a computer’s CPU (central processing unit) and GPU (graphics processing unit). AMD is now reportedly close to announcing a $30 billion acquisition of rival chipmaker Xilinx (symbol XLNX on Nasdaq). Xilinx manufactures programmable chips that are used in data centres, telecom networks, including 5G, the automotive industry, and by aerospace firms. The company’s shares have soared over 174% in the last year. Pandemic-driven demand for PCs, gaming consoles and other devices that use its chips have driven that gain. The success encouraged the company to lift its annual revenue outlook in July, with sales now expected to rise 32% over 2019’s revenue. The sharp share price gain is also likely behind AMD’s decision to use its stock to make a big purchase like Xilinx. If successful, the purchase would be the third-biggest computer chip acquisition this year. Analog Devices (symbol ADI on Nasdaq) agreed…

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