By C. D. Date Associated Press Writer, April 1, 1998
SANTA CLARA, Calif. (AP) -- IBM takes stake in troubled chip maker.
An unidentified spokesman for IBM announced today, that it will be acquiring a large stake in troubled chipmaker Advanced Micro Devices.
The deal, valued at approximately 800 million dollars will vault AMD into a an enviable position in the semiconductor industry.
"With an investment like this, from a company like IBM, AMD is sure to take a bite out of Intel, possibly even toppling them," analyst Tom Kurlack said of the deal.
"Rumor has it, Intel has been using their old designs for the 8088 for the last fifteen years. Someone was bound to catch them," continued Kurlack.
While most analysts do not believe that AMD will put Intel out of business, they do contend that AMD will now be the industry leader, setting the standards for the next century.
AMD has no official comment as of yet.
AP-NY-04-01-98 0001EST |
