Intel Denies AMD Graphics Deal
Ashley Allen / 10 months ago
Intel has denied that it has licenced AMD’s graphics technology, contradicting recent reports that the two companies had struck a new deal. Fudzilla reported that Intel, following the end of its agreement with NVIDIA, had made AMD its new graphics partner. However, Intel has told financial news outlet Barron’s that the story is “untrue.”
Intel Speaks to Barron’s
Barron’s Tiernan Ray reports:
“In a statement sent to Tech Trader Daily by an Intel spokesperson, the company said “The recent rumors that Intel has licensed AMD’s graphics technology are untrue”.”
Though Intel denied that a deal with AMD had been agreed, it did not deny that such a deal could be agreed. Ray writes:
“I asked Intel if the company has any further detail on whether it has definitely decided not to license technology from AMD. The company said no further detail would be provided.”
Did AMD Play The Rumour to Boost its Stock?
On the back of the Intel story, which broke on 15th May, AMD’s stock price rose by 11.7%. AMD made no statement – neither confirming or denying – about its rumoured Intel deal at its investors meeting yesterday. Did AMD deliberately keep quiet so as to not impact its rising stock? Barron’s reports:
“When AMD failed to disclose any such deal yesterday, during its annual analyst meeting to discuss its technology and financial outlook, the AMD stock was punished Wednesday.”
Following Intel’s denial of the deal, though, AMD’s stock fell to the same level it was at before the rumour:
“AMD shares today closed down $1.55, over 12%, at $11.20, reversing a 12% climb yesterday on the Fudzilla rumor.”
If AMD did keep quiet about its reported Intel deal to inflate its stock price, its gain was distinctly short-term.