On Valentine's Day on February 14, AMD officially announced the acquisition of FPGA giant Xilinx, in addition to expanding the product line, this move also directly allowed AMD's market value to surpass that of rival Intel, which is the first time in history.
AMD announced the acquisition of Xilinx in October 2020, using an all-stock swap, with 1 Xilinx stock exchanged for 1.7234 AMD shares, which was worth about $35 billion at the time.
Since then, the stock prices of AMD and Xilinx have risen and fallen synchronously, and have risen by about 70% and 80% respectively, respectively, and the total value of the transaction has also risen to $53 billion.
Still, since there is no cash involved, this blockbuster acquisition will not put any debt pressure on AMD.
As of the close of trading on February 15, local time, AMD issued a total of 1.216 billion shares, and issued 427 million shares to its shareholders for the acquisition of Xilinx, a total of 1.643 billion shares, with a closing price of $121.47 and a total market value of $199.58 billion. Intel's stock price in the same period was $197.20 billion, which was surpassed by AMD for the first time in history.
And recently the research institute Mercury Research also released the market share of x86 processors in the fourth quarter of 2021, and AMD created a record high with a share of 25.6%.
AMD had a record 25.3% market share 15 years ago in 2006, and after years of hard work AMD has finally returned to this high.
Tom's Hardware pointed out that the reason for the increase in AMD share in the quarter was mainly that AMD competed for a lot of Intel's share in the server market, but at the same time Intel's market share increased in desktop and laptop computers.
Due to the limitation of capacity shortage, AMD can only prioritize the limited production capacity to ensure higher profitability server products to ensure profitability.
However, despite the limitations of capacity shortages, AMD achieved server CPU growth for the 11th consecutive quarter, reaching a market share of 10.7%, a recent high.