Old rumors are resurfacing as the PC market is shrinking. According to an unnamed informer at Tech Trader Daily, Intel could be thinking of buying long time rival AMD.
Both companies have unique and competing intellectual property that, if combined, could better the chances of the newly formed entity to fight emerging players in the mobile computing market, namely ARM and licensees.
The sales of computers based on x86 architecture are stagnating and might even be shrinking in the near future, pushed back by tablets and smartphones; a market in which neither Intel nor AMD could make significant advances in the past years. The presence of new players like ARM in the changing computer market could also mean that such a merger could be allowed to move forward under anti-trust laws and regulations.
AMD’s stock rose 14% in the wake of the rumors.