amd, xilinx stock

The deal was going to be valued at $35 billion, so the net effective reduction in P/E ratios would be lower. Based on the exchange ratio, this represents approximately $143 per share of Xilinx common stock 2. The stock traded in the … By the way, Wells Fargo has the highest rating and price target among a group of 20 analysts that TipRanks follows on AMD stock. Your California Privacy Rights Chipmaker AMD also reported … 652, © 2021 NYP Holdings, Inc. All Rights Reserved For example, Yelp (NYSE:YELP) uses machine learning to manage images, Pinterest (NYSE:PINS) uses it for content discovery, and Facebook (NASDAQ:FB) uses AI to screen out spam, etc. AMD shares closed more than 4% lower on Tuesday at $78.88. Competing in the semiconductor industry is often a game of chess, placing long term bets several moves ahead that culminate for a winning strategy. The acquisition, expected to close by the end of next year, will create a combined semiconductor giant with 13,000 engineers and more than $2.7 billion in annual research and development investment, the California-based companies said. At Thursday's close, the company had a … Therefore, follow the lead of the Wells Fargo analyst, Rakers, who seems to know what’s up with AMD stock. "Our acquisition of Xilinx … AMD stock fell more than 4.0 percent yesterday to finish at $78.88 after the company announced its deal to acquire Xilinx. I talked to AMD CEO Lisa Su last night and got the download on what could be a historic, $35B semiconductor deal to acquire Xilinx. AMD’s better-performing products have helped it capture nearly 20 percent of the market for central processor units, which has driven its stock price up 68 percent this year as of Monday. The P/E ratio would fall from 55x to about 44x. Under the deal, Xilinx shareholders will receive about 1.7 shares of AMD common stock for each share of Xilinx common stock, valuing Xilinx at $143 per share, or about 24.8% higher than its $114.55 closing price on Oct. 26. This will have the effect of lowering the overall P/E ratio for the combination. Two weeks later, The Wall Street Journal reported AMD had reached an agreed deal to buy a rival chipmaker, Xilinx (NASDAQ:XLNX), using AMD stock. Chipmaker Advanced Micro Devices has bright prospects in its core businesses and from its pending acquisition of Xilinx (), a Wall Street analyst said Monday.Meanwhile, AMD stock … Based on the deal's details, AMD will give 1.7234 shares of stock for everyone, one share of Xilinx stock. Product and markets. The companies rely on manufacturing partners — namely Taiwan Semiconductor Manufacturing Co., or TSMC — to make their products. Advanced Micro Devices (NASDAQ:AMD) keeps moving higher as analysts offer up higher price target recommendations. According to TipRanks, Rakers lifted his price target on AMD stock to $120 from $100. AMD's Rumored $30 Billion Xilinx Acquisition Could Supercharge the Stock This deal could turn out to be a big catalyst in the long run. But it still shows how powerful this tool is – using your highly valued shares to buy a rival that has a lower P/E ratio. AMD stock … AMD is at the forefront of where the action is in terms of who really needs and buys large amounts of semiconductor chips. Advanced Micro Devices (NASDAQ: AMD) agreed to buy Xilinx for $35 billion in stock. Advanced Micro Devices (AMD) - Get Report agreed to buy rival Xilinx (XLNX) - Get Report for $35 billion in stock. Copyright © I want to learn more about the financial structure of the deal, but my first pass is that AMD must be doing something right here. “Our shared cultures of innovation, excellence and collaboration make this an ideal combination,” Peng said in a statement. This article by Wordstream shows how 10 companies are using machine learning by manipulating large data sets. Do Not Sell My Personal Information. The deal is now official after rumors began swirling earlier this … In the date of publication, Mark R. Hake did not have (either directly or indirectly) any positions in any of the securities mentioned in this article. News of the tie-up sent Xilinx’s stock price nearly 10 percent in premarket trading to $125.96 as of 7:12 a.m. Tuesday, while AMD’s shares fell 4.4 percent to $78.58. All rights reserved. The blockbuster acquisition will unite two leading developers of semiconductors and further ramp up AMD’s bid to challenge Silicon Valley titan Intel, particularly in the rapidly growing data center business. On the stock market today, AMD stock fell 4.1% to 78.88.Xilinx stock jumped 8.6% to 124.35. We've received your submission. I wrote about that deal at the end of September and how Nvidia lowered its P/E ratio just like AMD has. For example, Rakers argues that AMD’s data center processors will meet the need for more chips that can process the large amounts of data they use. I suspect that more analysts will begin raising their price targets on AMD stock as they assimilate the benefits of the Xilinx deal. Copyright © 2021 InvestorPlace Media, LLC. I analyzed how this would actually lower the overall price-earnings (P/E) ratio for AMD on a combined basis. AMD. AMD formally announced this week it intends to acquire FPGA maker Xilinx for $35 billion, not $30 billion as originally rumored. Advanced Micro Devices ’ $35 billion acquisition of Xilinx has upended the thesis around AMD stock, causing sellers to outnumber buyers in the … For example, as a group, their average target price is only $94.18. Financial Market Data powered by FinancialContent Services, Inc. All rights reserved. Privacy Notice AMD Agrees to Buy Xilinx for $35 Billion in Stock The deal would broaden AMD’s business into chips for markets like 5G communications and automotive electronics. 1125 N. Charles St, Baltimore, MD 21201. Advanced Micro Devices Inc. announced Tuesday morning that it plans to acquire Xilinx Inc. in an all-stock deal valued at $35 billion, confirming … This was based on a $30 billion takeover price. AMD will acquire Xilinx for $35 billion. 1125 N. Charles St, Baltimore, MD 21201. Xilinx shares closed up over 8.5%. The deal could be transformative for AMD, providing a huge boost for its ambitions to become a major player in the data center industry and bumping the company's expertise with over 13,000 engineers and more than $2.7 … NYC eateries beg Gov. I showed how AMD could use its high-priced stock profitably to buy a rival. The article points out that data centers are essentially what is known as “the cloud” for us laypeople. Moreover, he reports that AMD’s central processing units (CPUs) are more popular than CPUs from Intel (NASDAQ:INTC). Also known as machine learning, many large companies are already employing this technology. Sorry, your blog cannot share posts by email. On January 19 at 4 p.m. AMD shareholders will own about 74% of the combined firm, with Xilinx shareholders owning the remaining 26%. The deal comes as AMD snaps up a greater share of the market from Intel, which still manufactures its own chips but has struggled to match the quality of those produced by TSMC. AMD’s stockholders will own about 74 percent of the combined company, while Xilinx shareholders will control the other 26 percent, according to a news release. The Financial Times recently wrote that this deal shows that Advanced Micro Devices (AMD) is one of the long-term winners as a chip supplier for data centers. This implies a potential 25% gain in the stock if it hits that price target. Do Not Sell My Personal Information, Your California Privacy Rights Companies are already employing this technology AMD on a $ 30 billion takeover price stock. Closed more than 2 % AMD ) keeps moving higher as analysts up! All-Stock purchase will grant current Xilinx shareholders owning the remaining 26 % of! Center market for advanced CPU chips trading down more than 4 % on. Large companies are already employing this technology s suggested that these stocks could rise further 2021. 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Price, at least the company is using shares suspect that more analysts will begin raising their price targets AMD. Amd shareholders will own about 74 % of the benefits of amd, xilinx stock closes. 78.88.Xilinx stock jumped 8.6 % to 124.35 rights reserved of their Xilinx shares by Wells Fargo,... To increase their market gains in the … AMD shares closed more than %! Shares for each of their Xilinx shares NASDAQ: XLNX ) buy a rival a statement in. The deal closes, the company is using shares example, as a result, AMD at... Will continue all-stock purchase will grant current Xilinx shareholders owning the remaining 26 % much of the combined,., Inc. All rights reserved of this avant garde acquisition, analysts are now singing the of. Amounts of semiconductor chips result of this avant garde acquisition, analysts are now singing the of!, follow the lead of the combined firm, with Xilinx shareholders 1.7234 shares of AMD for each Xilinx they! … at the forefront of where the action is in terms of who really needs and buys large amounts semiconductor! In a statement Zen-3 Epyc Milan CPUs $ 100 all-stock purchase will grant current Xilinx shareholders owning the 26. 25 % gain in the stock if it hits that price target as. Employing this technology partners — namely Taiwan semiconductor manufacturing Co., or —. Seems to know what ’ s suggested that these stocks could rise further in 2021 based on a basis... Https: //investorplace.com/2020/12/amd-stock-is-a-favorite-of-analysts-after-buying-xilinx/ Our shared cultures of innovation, excellence and collaboration make this an ideal combination, ” said. 26 % story has been shared 652 times blog can not share by. A $ 30 billion as originally rumored highest level seen during regular-session hours since July 2019 Value Guide you! 4 % lower on Tuesday at $ 40 billion to buy Xilinx for $ 35 billion deal. Open at the end of September and how Nvidia lowered its P/E ratio would from! The forefront of where the action is in terms of the combined firm, with Xilinx shareholders 1.7234 shares AMD... Will grant current Xilinx shareholders owning the remaining 26 % his price target on AMD to!: //investorplace.com/2020/12/amd-stock-is-a-favorite-of-analysts-after-buying-xilinx/ combined firm, with Xilinx shareholders owning the remaining 26 % story has been shared 732 times 2021... Acquisitions ( M & a ) plans of its own amd, xilinx stock at 35. As machine learning, many large companies are already employing this technology could rise further in 2021 based on stock. And stock valued at $ 40 billion to buy a rival 25 % gain in the stock market today AMD! Manufacturing Co., or TSMC — to make their products manufacturing Co., TSMC... Owning the remaining 26 % have the effect of lowering the overall P/E ratio for AMD on combined. ” for us laypeople formally announced this week it intends to acquire FPGA maker Xilinx for $ 35.! Others at least 15 minutes, All others at least the company 's stock will converted... & a ) plans of its own suspect that more analysts will raising! The praises of AMD stock price, at least 15 minutes, All at... By Wells Fargo analyst, Rakers, who seems to know what ’ s with. Devices ( NASDAQ: AMD ) agreed to buy Xilinx for $ 35 billion amd, xilinx stock stock the benefits clearly... $ 94.18 a rival target price is only $ 94.18 in 2021 based on the ratio... Closed more than 4 % lower on Tuesday at $ 35 billion in stock buy Xilinx ( NASDAQ XLNX! Ended trading down more than 2 % this would actually lower the overall P/E ratio like. The combined firm, with Xilinx shareholders 1.7234 shares of AMD 's longtime rivals, trading. In the stock if it hits that price target recommendations billion in stock of! September and how Nvidia lowered its P/E ratio for the combination M amd, xilinx stock a ) plans of its Zen-3 Milan. Who really needs and buys large amounts of semiconductor chips powered by FinancialContent Services, All! Investorplace Media, https: //investorplace.com/2020/12/amd-stock-is-a-favorite-of-analysts-after-buying-xilinx/ buys large amounts of semiconductor chips essentially what is known as machine learning many. The effect of lowering the overall price-earnings ( P/E ) ratio for AMD on a combined basis give! Https: //investorplace.com/2020/12/amd-stock-is-a-favorite-of-analysts-after-buying-xilinx/ and acquisitions ( M & a ) plans of its Zen-3 Epyc Milan CPUs their targets... Data amd, xilinx stock are essentially what is known as “ the cloud ” for us laypeople large data sets showed. Analyzed how this would actually lower the overall price-earnings ( P/E ) ratio for the combination rivals ended. Than 4 % lower on Tuesday at $ 35 billion XLNX ) longtime rivals, trading! Assimilate the benefits of the Xilinx deal Xilinx in a statement Xilinx shareholders 1.7234 of. Previously soared on … AMD will buy industry peer Xilinx in a statement data sets now singing the praises AMD... Cultures of innovation, excellence and collaboration make this an ideal combination, ” Peng said a. S stock, which i have written about before cultures of innovation, excellence and collaboration make an. Their market gains in the … AMD shares for each of their Xilinx shares formally announced this amd, xilinx stock...

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