83.85 -1.02 (-1.20%)
After hours: 6:53PM EDT
|Bid||84.16 x 800|
|Ask||84.10 x 1000|
|Day's range||84.02 - 85.32|
|52-week range||42.70 - 91.27|
|Beta (5Y monthly)||0.86|
|PE ratio (TTM)||38.07|
|Forward dividend & yield||1.70 (2.03%)|
|Ex-dividend date||17 Dec 2020|
|1y target est||82.35|
Zacks Investment Ideas feature highlights: Advanced Micro Devices, Xilinx, Analog Devices, Maxim Integrated Products and Taiwan Semiconductor Manufacturing Company
Advanced Micro Devices (NASDAQ: AMD) will acquire rival Xilinx (NASDAQ: XLNX) in a $35 billion all-stock transaction that sees the chipmaker making its biggest push yet to challenge Intel (NASDAQ: INTC) in the data center market. The deal is expected to close at the end of 2021, and though it builds on each chip company's outsourced manufacturing capabilities, a leaner strategy than that deployed by Intel, it also introduces an element of risk because both AMD and Xilinx rely heavily upon Taiwan Semiconductor Manufacturing (NYSE: TSM) for their fab needs. Under the purchase agreement, Xilinx shareholders will receive 1.7234 shares of AMD for each share they own of Xilinx, which equates to $143 in cash, a near 25% premium to the chipmaker's closing price yesterday.
The deal, which AMD expects to close at the end of 2021, will create a combined company with 13,000 engineers and a completely outsourced manufacturing strategy that relies heavily on Taiwan Semiconductor Manufacturing Co Ltd (TSMC). The two U.S. companies have benefited from a more nimble approach to grab market share from Intel, which has struggled with internal manufacturing. AMD has long been Intel's chief rival for central processor units (CPUs) in the personal computer business.