Replies to post #3357 on Intel Corp (INTC)

[fowler]

Could this be the first step towards IBM buying AMD?

I doubt it, IBM's strategy seems to be going away from proprietary manufacturing and towards services (they just announced they are out sourcing their PC manufacturing). AMD could be had for a mere $2.3B (plus a premium), but it certainly wouldn't be accretive to earnings. It wouldn't surprise me to see IBM take a minority stake in AMD, probably diluting existing shareholders.

From a marketing perspective, IBM buying AMD could make sense. The IBM brand might command close to the same microprocessor premium as the Intel brand.

John