AMD Is Picking Up Pennies in Front of the Intel Steamroller
The news that Advanced Micro Devices (NASDAQ: AMD) would supply semi-custom graphics chips to Intel (NASDAQ: INTC) for use in a new product aimed at notebooks was surprising when it broke earlier this month. There had been rumors of an Intel-AMD licensing deal earlier this year, which seemed far-fetched at the time. This deal involves AMD selling chips to Intel, with no licensing of technology or patents, but it still validates the spirit of the rumor.
It originally seemed like a strange move for Intel, which competes with AMD in the PC and server CPU markets. It made more sense a few days later, when Intel announced that Raja Koduri, chief architect of the Radeon Technologies Group at AMD, was jumping ship to Intel. Through its new Core and Visual Computing Group, Intel plans to develop discrete graphics solutions of its own. Putting AMD graphics into Intel products is a stopgap measure, not a long-term strategy.
Image source: AMD.
Source: Fool.com