AMD rumoured to be looking to a buyer, denies the rumors

AMD are having a hard time right now, their CPUs are not selling at anywhere near the meteoric levels of competitor Intel, and their graphics division are having increased competition from NVIDIA. Now we have reports from Reuters that AMD is consulting with JP Morgan Chase & Co, where they’re currently exploring their potential options.

These options could, unfortunately, be a sale of the company. AMD stock dropped 18% when the news hit the wire. Options given to AMD could include the sale of its portfolio of patents in order to raise up some cash, or we could see another, bigger company completely acquire the entire company – but this would be a stretch, but it’s definitely not off the table.

After this news broke, the chipmaker denied that they are not for sale, stating to TheStreet, “AMD’s board and management believe that the strategy the company is currently pursuing to drive long-term growth by leveraging AMD’s highly-differentiated technology assets is the right approach to enhance shareholder value. AMD is not actively pursuing a sale of the company or significant assets at this time”.

Just this year alone, AMD stock is down 61.3%. Remember, AMD have products in all three of the next-gen consoles from Nintendo, Microsoft and Sony – so while they’re down now, they’re definitely not out. The PC market is changing, and AMD are having to change with it.

Source: Reuters