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AMD rubbishes rumour it's spinning off graphics and chip unit


Could AMD split into two companies? That's the scenario Reuters put forward over the weekend in a report that cited anonymous sources close to the matter.

According to the report, the embattled chip company could be looking to spin off its graphics division which was known as ATI when AMD purchased it for $5.4 billion (about £3.5 billion, AU$10 billion) in 2006.

AMD issued a statement in response saying that "we have not hired an outside agency to explore spinning-off/splitting the [graphics and general-purpose CPU divisions of the] company, we remain committed to the long-term strategy we laid out for the company in May at our Financial Analyst Day, which encompasses all parts of the business."

Marginal improvement

That article caused AMD's shares to spike, although "spike" is probably an overstatement given that the company's stock is currently not far from its 52-week low of $2.14.

At just over $2 billion, Intel's once formidable nemesis now seems to be on the ropes with a number of potential suitors (Qualcomm, Samsung, Broadcom) expected to line up fairly quickly should AMD decide to call it a day and put a "for sale" sign on its forecourt.