Financial analysts on Wall Street yesterday gave credence to rumours that Advanced Micro Devices (AMD) is up for sale.
The putative buyer is rumoured to be a Chinese company but there are caveats around such a deal.
For example, AMD’s licence agreement with chip behemoth Intel would fall into desuetude if such a sale was to go ahead.
But the company may be worth something even without that element, given that AMD’s X86 business isn’t that important any more. Its graphics business continues to do well.
AMD’s share price closed yesterday at $2.70.
On the 20th of January, AMD released its fourth quarter results, showing revenues of $1.24 billion – down 22 percent compared to the same quarter the year before.
Newly sprung CEO Dr Lisa Su said then AMD had made some progress diversifying its business but admitted its PC business faced challenges.
It is facing “channel headwinds” in its computing and graphics segment, she said then.