Rumors are circulating that AMD is up for sale, and that Dell might be interested in purchasing the chip giant.
Shares in the company were up around 5% yesterday on the rumors, which seem to have originated with Barrow's:
There’s not a lot of color on the rumor at this point. Is Dell considering making a more integrated kind of product line? Talk about a change in strategy.
However, in an update, things become a little more toned down:
My former colleague Ian King with Bloomberg this afternoon digs into this a bit, quoting analyst Patrick Wang with Wedbush Securities, who says “there is no management team there,” at AMD, and that “there is some ‘chatter’ that the company is up for sale,” but that in his view, “it’s a far-fetched possibility.”
Could Dell be interested in AMD? At around $6 billion, it would be one heck of a purchase and certainly give the company leverage against Intel, and give the OEM not only access to CPUs, but also GPUs, which means pressure on NVIDIA too.
It would sure liven things up. But for now I'm putting this one firmly in the 'rumor' pile.