Dell Rumored To Be Interested In Buying AMD

Recently, AMD's stock shares have shot up 42 cents, or 5%, and the reason appears to be that there are rumors abounding that AMD might be up for sale, and that Dell might be interested in buying. With the vast majority of AMD's top leadership leaving, the rumor only has extra fuel, with analysts saying things such as Patrick Wang's quote: "there is no management team there." Whilst some thought that top shareholders simply wanted new leadership to take the reigns, no mention has been made of replacements for the departed executives, and it is being speculated that AMD might be up for sale.

Also interesting is what kind of stake Dell would have in purchasing a semiconductor giant such as AMD. Do they want to more tightly integrate their products? Do they really want to compete with Intel and Nvidia both and kill any deals Dell has with the two companies? Whilst Dell has generally maintained a relatively conservative business strategy, this would be a radical shift in their product strategies.

Speculation aside, this is only a rumor, and thus should be taken with a large grain of salt. Most analysts believe it is unlikely to happen. In spite of the rumors, Wang does claim that "it’s a far- fetched possibility."

Read the original Bloomberg article here.