So I’ve been keeping a close eye on the state of affairs around the whole Nvidia – ARM deal. It’s pretty significant in the world of tech and will no doubt have a ripple effect on the rest of the tech industry for years to come. Today, more acquisition news today on the other side of the table as AMD have now splashed some cash on buying Xilinx for 35 billion dollars. That is a hefty investment and it speaks volumes around AMD’s vision and current success as they prepare for future growth and projection.
Xilinx is a semiconductor manufacturing company based in America. They are widely known for innovating in the programmable SoC field and have pioneered field-programmable gate array and adaptive compute acceleration. XLNX is listed on NASDAQ and has seen its stock price surge over 7% since the announcement. This sizeable, and I mean SERIOUSLY sizeable investment is a move that will shape AMD’s future as they aim to be market leaders in the computing industry across various business streams. This is also an expansion of customer bases as the portfolio of Xilinx clients are sure to be brought over and this acquisition is likely to instil further confidence as growth flows into research and development.
Moves like this are not done without strategic planning and it’s clear that AMD see great synergy between their existing business lines and Xilinx’s. Similar to the Nvidia/ARM deal, this deal will take a while to closeout but there may be far less chance of firms lobbying around the deal in comparison. Xilinx have their base in the US and most of the contention is likely to come from shareholders, if at all. AMD continue to grow and have clawed back with great momentum in the computing industry and this spending is testament to their continuing success.
