It’s hard to discuss the supply chain crisis of 2021 without bringing up semiconductors. These tiny computer chips has become an increasingly sought after commodity. The electric vehicle (EV) race has taken off, and the rise of the metaverse has followed. As a result, companies across different sectors are scrambling to secure them. This has led to a highly profitable year and positive industry outlook for firms such as Nvidia (NASDAQ:NVDA) and Micron Technologies (NASDAQ:MU) who help produce these data storage devices.
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One of their competitors, though, recently acquired a new competitive edge. Advanced Micro Devices (NASDAQ:AMD) confirmed today that it has acquired Xilinx (NASDAQ:XLNX), a leading chip producer. While XLNX stock is no longer trading, news of the AMD-Xilinx merger has sent AMD shares rising all morning. As of this writing, they are up 4% for the day and don’t seem to be slowing down. While it’s been a difficult month for AMD stock so far, this development could easily be the catalyst the company needs to pull back into the race alongside its larger peers. Last month, news of this impending deal sent XLNX stock shooting up.
According to the statement released by the company, the merger creates “the industry’s high-performance and adaptive computing leader.” If that’s true, the future will certainly be bright for AMD stock. What else can investors expect following this merger? Let’s take a closer look.
What the AMD-Xilinx Merger Means for XLNX Stock
On the date of publication, Samuel O’Brient did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
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