AMD Buys Graphics Chip Maker ATI

AMD Advanced Micro Devices Inc. will likely buy the no.2 graphics chip maker ATI Technologies Inc. Couple of days ago the two giants were finalizing the deal that could cost at around $5.4 billion.

If other tech firms, software companies (eBay, Google, Yahoo, etc.) are feeling the heat of the competition, as shown by buying spree and merging strategy that’s been going on this year, so to is the hardware industry.

AMD, for the longest time, which has been in the microprocessor production, decided that to further propel the chance toppling Intel, it has to diversify. This AMD-ATI marriage could possibly shift the balance of power in the chip industry in significant ways as ATI graphics cards are well-entrenched in the market.

Also, ATI produces consumer electronics like High Definition TV and cellphones. The buying of ATI will now make AMD a player in diverse field. AMD said that in 2007 the two companies would deliver "customer-centric platforms", specifically in the commercial and mobile computing segments and the growing consumer-electronic market.

This is definitely a good buy.

Will Intel buy Nvidia now?