Rumour: Intel may buy AMD

Shares of AMD have surged, rising by 40 per cent over the last five days, a rally whose roots can apparently be traced back to a persistent rumour about the possible acquisition of AMD by its arch rival Intel. That rumour is based on the fact that the realm of personal computing (or PCs) is no longer limited to x86 technology where Intel and AMD operate.

Such a paradigm shift means that, according to an anonymous source, “There aren’t as many anti-trusts issues”. Yet, an industry analyst told ITProPortal that the acquisition is unlikely given that Intel needs to keep AMD alive in order not to be hassled by the Department of Justice, the way Microsoft had been years ago.

Intel and AMD have been at loggerhead for decades now but the former has all but killed AMD. The latter’s processors have long been defeated by Intel’s when it comes to the processing power game and AMD has bet the farm on value-for-money and GPU integration.

However for the bigger of the two, a new three-letter threat has emerged; ARM is an altogether more powerful rival that could potentially topple Intel and the x86 architecture thanks to its different business model which relies on a massive ecosystem, one which ironically even includes Intel.