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Would Microsoft Buy AMD?

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In a report published Wednesday, Bernstein analysts mentioned that there were reports of a possible acquisition by Microsoft Corporation (NASDAQ: MSFT) of Advanced Micro Devices, Inc. (NASDAQ: AMD).

Microsoft's shares declined on speculations of an acquisition of Advanced Micro Devices, since investors had concerns that the former company could be moving into semiconductors and hardware.

"We do not believe such a deal makes sense from an economic standpoint (tiny potential cost savings for the size of the needed investment) nor strategically (as they would become the sole-source supplier to their largest console rival), & would come with substantial baggage of a loss making shrinking, cash burning business in disarray," the Bernstein report stated.

While the objective of solidifying XBox chip supply may someday make sense, the analysts believe the time is not just yet and even then Microsoft would do better with a "strategic investment or buying chip rights."

"We see a flat-out acquisition as highly unlikely," the report added.

Latest Ratings for MSFT

Nov 2017UBSMaintainsBuy
Oct 2017OppenheimerMaintainsOutperform
Oct 2017ArgusUpgradesHoldBuy

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Posted-In: BernsteinAnalyst Color Analyst Ratings Best of Benzinga


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