AMD: The closing of the American stock exchange on Tuesday (15) marked a remarkable moment for North American AMD. It was the first time in history that the processor and video card maker surpassed its main competitor, Intel, in market value. That day, the “red team” was valued at US$ 197.75 billion (R$ 1.018 trillion), against US$ 197.24 billion (R$ 1.015 trillion) for the blue team.
This increase in AMD’s market value may have been sudden, but it wasn’t unexpected, since on Monday (14), the Santa Clara company announced the purchase of another Californian company, Xilinx, a semiconductor maker, by a US$ 49 billion (R$ 253 billion) settlement in a process that involved only the transfer of shares.
Acquisition of Xilinx
The acquisition of the San Jose company, which gave its new owner a huge edge in the data center market, was accomplished by converting 248.38 million shares of Xilinx into 428 million new shares of AMD. It was the addition of these new shares to the Santa Clara company’s existing 1.2 billion shares that provided this book-entry advantage.
Now merged into AMD, Xilinx is one of the world’s largest manufacturers of FPGAs (programmable gate arrays), which adds to the blue team a portfolio of differentiated silicon products, opening horizons for new niches such as: automated steering, aerospace, 5G communications and IoT market, among others.
To make AMD’s celebration louder, the historic record comes a week after another of its rivals, Nvidia, announced that it was pulling out of ARM.