On October 27, chip maker AMD acquired Xilinx with a $35 billion all-stock swap. AMD shareholders will own about 74% of the combined company, and Xilinx shareholders will own the remaining 26%. AMD announced that the purpose of the transaction is to enhance its data center (IDC) product lineup. Affected by this news, AMD stock opened up 2.76% to $82.23 per share. AMD stock is currently operating at a historical high level. AMD is in the process of leaping forward. The trend.
AMD will fully compete with Intel in AI/5G/IDC/automotive electronics/aerospace
Xilinx is the inventor of field programmable gate array (FPGA) chips and has the largest share of FPGA chips. Intel acquired Altera in 2015 to enter the FPGA business and is also Xilinx’s biggest competitor. This time AMD and Xilinx have joined forces. The business is expanded to face AI/5G/IDC/automotive electronics/aerospace and other markets, thus forming a comprehensive competitive situation with Intel.
AMD will confront Nvidia in the IDC heterogeneous computing market
Xilinx is one of the “leaders” in the data center heterogeneous computing market. Its ACAP adaptive computing acceleration platform, coupled with its real-time (RT) server, can provide live broadcasting, telemedicine, distance education, e-sports/game broadcasting, Various business scenarios such as webcasting, social video networks, and sports live broadcasts have been fully accelerated. AMD's acquisition of this time will enhance its data center product lineup, especially in the heterogeneous computing market to form a direct confrontation with NVIDIA.
AMD CEO Lisa Su said in his speech that Xilinx will help his company become "the industry leader in high-performance computing and the partner of choice for the world's largest and most important technology company." After the merger, AMD’s CEO Su Zifeng will serve as the CEO of the new company, and Xilinx CEO Victor Peng will serve as the president, responsible for the original Xilinx business.
Last Thursday, Intel’s quarterly profit fell 29%, causing its stock price to fall by more than 10%, while AMD reported on Tuesday that its quarterly profit increased by 148%. The price of AMD stock was about US$2 per share 5 years ago. The current AMD stock price is about US$82, which is 40 times that of 5 years ago. It has risen by nearly 80% this year, and its current market value is close to US$100 billion.
Improve AMD gross profit
Xilinx was founded in 1984 and is the originator of FPGA chips. FPGAs are widely used in the communications field. Huawei is one of its largest customers. Affected by US sanctions on Huawei, the company said last week that its revenue fell by 8%, but Xilinx The gross profit level of AMD is much higher than that of AMD, and Xilinx continues to generate considerable cash flow (Xilinx’s market value is about 28 billion U.S. dollars). After the transaction is completed, AMD’s overall gross profit level will be highly improved, so this transaction is subject to The support of Wall Street.
Good for Taiwan's semiconductor industry, Intel will be under greater pressure in the field of chip manufacturing
Both AMD and Xilinx are highly dependent on external manufacturing supply chains, especially for the Taiwan Semiconductor Industry Group led by TSMC. The merger of the two companies will inevitably lead to the emergence of new products that package multiple chips together. They merge It will promote the development of Taiwan’s semiconductor industry and indirectly help Intel’s competitors in the field of chip manufacturing.
Huawei should learn from the mature capital operation methods of the West and get out of the blockade as soon as possible
Earlier, Huawei confirmed that it would sell the Honor mobile phone business unit. This is the first step for Huawei to sell its capital. Refer to this year: NVIDIA acquired ARM, Intel sold storage, and today AMD acquired Xilinx. Huawei should speed up its pace and move Huawei’s existing The industrial sector of Huawei is split, and the business is sold separately or enters the capital market, so that Huawei’s business can get out of the guts of US sanctions as soon as possible.