Intel Corp (INTC)

[Dan3]

Re: Is IBM Prince Charming..... or Hannibal Lecter?

Either way, there has been a lot of speculation recently that Intel and IBM will soon be going head-to-head in the PC CPU market. Either with AMD as IBM's proxy, or with IBM simply buying AMD.

There has been a lot of speculation that IBM would buyut AMD. Here's some more speculation reported in the Austin American Statesman.

Analyst predicts IBM will buy AMD in future

Just where is the tightening tech alliance between IBM Corp. and Advanced Micro Devices Inc. going? IBM is selling AMD's new Opteron server chip, and the two are collaborating on chip-manufacturing research.

Computer analyst Jonathan Eunice of Illuminata Inc. in Nashua, N.H., says he won't be surprised if Big Blue winds up buying AMD within several years.

His reasoning: AMD has designed interesting chips to compete with those made by rival Intel Corp., but AMD doesn't really have the financial muscle to prevail against the world's largest chip maker.
http://www.statesman.com/business/content/auto/epaper/editions/monday/business_f3e25005608511c50088....

It's a rather obvious course of events. AMD has products that are very competitive with Intel's, but AMD the company hasn't the juice to market them. As a result, AMD is worth $2.5 Billion while its somewhat larger mirror image, Intel, is worth $164 Billion. If some company with power in the industry (like IBM) buys AMD, AMD will likely be worth $25 Billion (or a lot more) overnight, simply from having gained credibility.

What do you think AMD would be worth the morning after Microsoft bought them?



What would Intel be worth 15 minutes later?

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