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Analyst Expects Nvidia to Acquire AMD

Doug Friedman, an analyst with American Technology Research, said that graphics chip maker Nvidia Corp. could well acquire x86 microprocessor maker Advanced Micro Devices in order to "re-architect it". The acquisition is considered to be useful due to the fact that roadmaps of AMD and Intel Corp. threat Nvidia. The only problem for the graphics giant is that AMD's x86 license is a non-transferable one.

"We believe AMD [could] face mounting pressure from shareholders, to restructure the company with a focus on a change in leadership," said the analyst. Indeed, shareholders of AMD are hardly pleased with the company's performance in the recent quarters as well as issues with the launch of quad-core microprocessors and the release of DirectX 10 graphics processing units. Nevertheless, late last year AMD managed to secure $622 million from Mubadala Development Company, which means that there are those who believe in AMD.

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