AMD-ATI Merger?

Forbes reports
Advanced Micro Devices may be looking to buy graphics company
ATI Technologies, a move that would benefit the overall graphics industry, according to RBC Capital Markets.

"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."

With the release of AMD Live!, AMD seem set to expand their horizons and tackle Intel in the desktop space full on this year. Dell are due to ship machines with AMD chips in them and a coupling with ATI could mean some interesting prospects for AMD for gaming and performance based systems.

Intels june quarter isn't going too well with revenues down 10% and the next quarter is set to look worse. As Intel starts cutting chip prices to gain market share back will this help in the long term if a partnership with ATI is on the horizon?

We have contacted both companies for an official response but at the time of writing have received no official response regarding the rumours.

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