ATi – AMD Merger?

So the internet is on fire after Forbes said an AMD – ATi merger was likely. First of all, this is just analyst speculation. Secondly, when are analyst ever right? Having said that, it is always fun to speculate…and hey, you never know. There is a thread in the forums discussing this story. Thanks to Luc Cesca for the link.

"The synergies of this seem consistent with the recent announcements by AMD to significantly increase capacity over the next few-years," wrote analyst Apjit Walia in a note to investors Wednesday. "We believe ATI is a rare-buy in the semiconductor space right now given the near-term tie-up dynamics." "This tie-up might make sense for AMD at this juncture but we don't think Intel should pursue tying-up with graphics companies and should instead look at the communications-space”.