AMD Taking on Intel in Data Centers With $35 Billion Xilinx Acquisition

Advanced Micro Devices (NASDAQ: AMD) will acquire rival Xilinx (NASDAQ: XLNX) in a $35 billion all-stock transaction that sees the chipmaker making its biggest push yet to challenge Intel (NASDAQ: INTC) in the data center market. The deal is expected to close at the end of 2021, and though it builds on each chip company's outsourced manufacturing capabilities, a leaner strategy than that deployed by Intel, it also introduces an element of risk because both AMD and Xilinx rely heavily upon Taiwan Semiconductor Manufacturing (NYSE: TSM) for their fab needs. Under the purchase agreement, Xilinx shareholders will receive 1.7234 shares of AMD for each share they own of Xilinx, which equates to $143 in cash, a near 25% premium to the chipmaker's closing price yesterday.