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Blog: Hardware AMD and ATI: One + One = Three
Rahul Sood (Blog) - July 22, 2006 9:35 PM

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9 comment(s) - last by beepandbop.. on Aug 15 at 2:38 PM

ATi + AMD = a go big strategy that will shake the very foundation of our industry

I have always said that ATI is a target for acquisition, and I truly believe they are a diamond hidden deep in the rough – and with a little bit of polishing this acquisition will go down in history as the best move that AMD ever made. I am going out on a limb – I, like many others, believe this deal is imminent and I am offering up my reasons why I believe this deal makes sense.

Based on the feedback I’ve received from many analysts, I am going to assume that most people will not be able to make sense of this deal. The following obvious questions come to mind;

1) Why would AMD buy ATI, why not NVIDIA? Isn’t NVIDIA a stronger company?

The answer this question requires some methodical strategic thought. This is not unlike a chess game – and I believe that AMD is positioning its pieces carefully before it works its way over to the king.

ATI is generally undervalued. They have been trading in a tight little window for what seems like forever. ATI does not have the market prowess that NVIDIA has; quite simply NVIDIA knows how to manage their relationships with Wall Street better than ATI does.

ATI is very much like AMD was 5+ years ago before the new AMD management came on board and started to fix the company. Under Hector Ruiz, new management leveraged the awesome innovations that AMD had under the hood and turned the company on its head. For the last 3+ years AMD has been the undisputed leader in almost all areas of the market.

ATI has some killer technologies under their...

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interesting

By theteamaqua on 7/24/2006 1:36:33 AM , Rating: 1

i think this acquisition marks the begining of the fall of PC industry ... i wouldnt say that no one will buy PV in the future, but its jsut not as good as when it was during the internet boom.

RE: interesting

By Knish on 7/24/2006 7:59:37 AM , Rating: 2

Let's face it, this stuff is already commoditized alreayd. Maybe not to us as enthusiasts, but 99.9% of the world doesn't care about 2x256mb of cache and the like.

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RE: interesting

By tuteja1986 on 7/24/2006 8:35:16 AM , Rating: 2

Lets hope that AMD managment can slap ATI people up and fix their lazness in GPU launch delay. Delay is the major reason ATI is in this huge mess , like R520 was two Quater late and by that Nvidia had captured almost all the sales.

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RE: interesting

By DigitalFreak on 7/24/2006 3:14:22 PM , Rating: 2

Stomp a mudhole....

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RE: interesting

By Phynaz on 7/24/2006 3:50:59 PM , Rating: 2

quote:
Lets hope that AMD managment can slap ATI people up and fix their lazness in GPU launch delay.

Considering AMD has never launched anything on time, that is highly doubtful.

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RE: interesting

By Knish on 7/24/2006 6:38:31 PM , Rating: 2

quote:
Considering AMD has never launched anything on time, that is highly doubtful.

Neither has AMD. And lately AMD has just killed off products as soon as it launches them anyway. A perfect match?

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What's nVidia gonna do?

By carage on 7/25/2006 12:19:06 AM , Rating: 2

Perhaps this means no more good nForce chipsets for AMD in the future?

Killer technologies..

By beepandbop on 8/15/2006 2:38:35 PM , Rating: 2

Interesting. I wonder if one of them is more efficent cooling but with 300w consuming GPUs thats immdiately doubtful...

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timing

By kattanna on 7/24/2006 4:52:09 PM , Rating: 2

i am left wondering about the timing of the announcement

what i mean is that this should steal a lot of thunder from the conroe..

i mean wasnt it conroe and crossfire that was/is the new gaming champion...

this announcement has to be like a kick in the junk for intel...AMD making money now off of every intel crossfire MB