Despite not being historically acquisitive, AMD has made at least five known acquisitions between 2002 and 2020. With its high stock price and billions in cash, AMD is in a strong position to carry out more M&A deals in 2023. The company's need to keep up in emerging spaces, particularly AI, could lead to more acquisitions.
Key takeaways:
- AMD, once a scrappy underdog, is now a $174 billion market cap company, surpassing Intel by more than $20 billion.
- The company's shares have multiplied roughly fivefold in the past five years due to its production of more powerful and energy-efficient chips.
- AMD recently acquired Nod.ai, a Silicon Valley-based developer of software to deploy AI models, and Pensando, a developer of programmable processors used in cloud computing, in a transaction valued at around $1.9 billion.
- AMD's largest purchase to date was the acquisition of Xilinx, a semiconductor company specializing in programmable logic devices, in a deal estimated to be a $50 billion transaction.