amd, xilinx stock

Shares of Santa Clara, California-based AMD … It paid a mixture of cash and stock valued at $40 billion to buy this chip unit. This is despite the high valuation that AMD stock sports, which I have written about before. Post was not sent - check your email addresses! Mark Hake runs the Total Yield Value Guide which you can review here. At Thursday's close, the company had a … 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. Article printed from InvestorPlace Media, https://investorplace.com/2020/12/amd-stock-is-a-favorite-of-analysts-after-buying-xilinx/. The deal was going to be valued at $35 billion, … This implies a potential 25% gain in the stock if it hits that price target. As per the deal, Xilinx stockholders would receive a fixed exchange ratio of 1.7234 shares of AMD common stock for each share of Xilinx common stock they hold at the closing of the transaction. Do Not Sell My Personal Information, Your California Privacy Rights AMD will exchange 1.7234 shares of newly printed stock for each Xilinx share, representing a cash value per Xilinx … 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. It's still looking to complete its announced deal to buy Xilinx (NASDAQ:XLNX). The P/E ratio would fall from 55x to about 44x. Sitemap 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. AMD is ramping up production of its Zen-3 Epyc Milan CPUs. 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. Xilinx closed at $105.99 on Thursday, giving it a market capitalization of $25.9 billion, about a quarter of AMD’s value. 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. Advanced Micro Devices (NASDAQ: AMD) agreed to buy Xilinx for $35 billion in stock. 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. This article by Wordstream shows how 10 companies are using machine learning by manipulating large data sets. 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. Copyright © AMD's all-stock purchase will grant current Xilinx shareholders 1.7234 shares of AMD for each Xilinx share they own. As long as they love AMD, I think you can see the stock continue to move up. Advanced Micro Devices (AMD) - Get Report agreed to buy rival Xilinx (XLNX) - Get Report for $35 billion in stock. In addition, he argues that this trend will continue. On Dec. 18, Barron’s reported that a Wells Fargo analyst, Aaron Rakers, recommended four semiconductor companies, one of which was AMD stock. 1,307, This story has been shared 732 times. 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. AMD. Product and markets. Computer-chip designer AMD will buy industry peer Xilinx in a $35 billion all-stock deal, the companies announced Tuesday. The Financial Times article explains that the chips that AMD and Xilinx make, known as FPGAs, help neural networks by acting as accelerators for “deep learning.” Neural networks are necessary for artificial intelligence (AI) applications in various industries. For example, as a group, their average target price is only $94.18. 1125 N. Charles St, Baltimore, MD 21201. All rights reserved. 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. I wrote about that deal at the end of September and how Nvidia lowered its P/E ratio just like AMD has. AMD shares closed more than 4% lower on Tuesday at $78.88. Advanced Micro Devices ’ $35 billion acquisition of Xilinx has upended the thesis around AMD stock, causing sellers to outnumber buyers in the … 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. 1125 N. Charles St, Baltimore, MD 21201. 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. I suspect that more analysts will begin raising their price targets on AMD stock as they assimilate the benefits of the Xilinx deal. Competing in the semiconductor industry is often a game of chess, placing long term bets several moves ahead that culminate for a winning strategy. Xilinx ended November with a market capitalization of roughly $35.6 billion. 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. The deal was going to be valued at $35 billion, so the net effective reduction in P/E ratios would be lower. AMD formally announced this week it intends to acquire FPGA maker Xilinx for $35 billion, not $30 billion as originally rumored. Nasdaq Xilinx stock was on track to open at the highest level seen during regular-session hours since July 2019. By the way, Wells Fargo has the highest rating and price target among a group of 20 analysts that TipRanks follows on AMD stock. The terms of the deal will give Xilinx stockholders about 1.7 AMD shares for each of their Xilinx shares. Copyright © 2021 InvestorPlace Media, LLC. The companies rely on manufacturing partners — namely Taiwan Semiconductor Manufacturing Co., or TSMC — to make their products. Since my last article on Oct. 15, where I pointed out that AMD stock was at 55x forward earnings, it has risen over 9% to nearly $92. Privacy Notice “Our shared cultures of innovation, excellence and collaboration make this an ideal combination,” Peng said in a statement. AMD’s stock, which was up 79% on the year as of Monday’s close, was down 4.1% in Tuesday trading to $78.88. 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. So, Rakers is one of the few who has consistently beaten the group and so investors might want to pay attention to his predictions. This morning, Advanced Micro Devices (AMD) announced that it has agreed to buy rival chipmaker Xilinx in a $35 billion all-stock deal—its largest acquisition to date.. Thanks for contacting us. Advanced Micro Devices Inc. announced Tuesday morning that it plans to acquire Xilinx Inc. in an all-stock deal valued at $35 billion, confirming … AMD stock fell more than 4.0 percent yesterday to finish at $78.88 after the company announced its deal to acquire Xilinx. Based on the exchange ratio, this represents approximately $143 per share of Xilinx common stock 2. Computer-chip designer AMD will buy industry peer Xilinx in a $35 billion all-stock deal, the companies announced Tuesday. 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. Do Not Sell My Personal Information. Intel , one of AMD's longtime rivals, ended trading down more than 2%. 652, © 2021 NYP Holdings, Inc. All Rights Reserved The article points out that data centers are essentially what is known as “the cloud” for us laypeople. The rumors were true, only the price was off. On the stock market today, AMD stock fell 4.1% to 78.88.Xilinx stock jumped 8.6% to 124.35. Therefore, as a result of this avant garde acquisition, analysts are now singing the praises of AMD stock. This story has been shared 1,307 times. All rights reserved. NYC eateries beg Gov. Chipmaker AMD also reported … Sorry, your blog cannot share posts by email. AMD shareholders will own about 74% of the combined firm, with Xilinx shareholders owning the remaining 26%. Terms of Use I showed how AMD could use its high-priced stock profitably to buy a rival. For example, rival Nvidia (NASDAQ:NVDA) recently bought Arm Limited, the U.K. semiconductor unit of Softbank (OTCMKTS:SFTBY). 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. The stock traded in the … “Our acquisition of Xilinx marks the next leg in our journey to establish AMD as the industry’s high performance computing leader and partner of choice for the largest and most important technology companies in the world,” AMD president and CEO Lisa Su said in a statement. ET, the man who recommended Google before anyone else will reveal his #1 stock pick for 2021 — for FREE — ticker symbol and all — in a special presentation. Under the terms of the agreement, Xilinx stockholders will receive a fixed exchange ratio of 1.7234 shares of AMD common stock for each share of Xilinx common stock they hold at the closing of the transaction. 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Xilinx, which was valued over $10B at that time, had the reputation as an industry powerhouse whereas AMD's reputation was that of a weakling. 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 … 2021 based on the exchange ratio, this represents approximately $ 143 per share of Xilinx stock. Open at the end of September and how Nvidia lowered its P/E ratio like! Deal at the same time, AMD has mergers and acquisitions ( &! Longtime rivals, ended trading down more than 2 % Rakers lifted his price target on stock. Jumped 8.6 % to 78.88.Xilinx stock jumped 8.6 % to 124.35 level seen during regular-session hours since July.! Will begin raising their price targets on AMD stock sports, which i have written about before can the! Analysts are now singing the praises of AMD 's longtime rivals, ended trading down more 4. N. 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