AMD Agrees to Buy Xilinx for $35 Billion in Latest Effort to Take on Rival Intel. Its Stock Is Dropping.

Max A. Cherney
·3 min read

Advanced Micro Devices said early Tuesday that it had reached an agreement to acquire semiconductor maker Xilinx for $35 billion. The acquisition could be transformative for (AMD) (ticker: AMD), giving it more resources and new business lines to better compete with its larger rival (INTC) (INTC), especially with chips designed for data centers and other cloud computing applications. The all-stock deal values Xilinx at roughly $143 a share, which represents a 25% premium to Monday’s closing price.