Shares of Xilinx (NASDAQ:XLNX) stock are soaring on Friday after some major merger and acquisition (M&A) news.
The Wall Street Journal reported on Thursday night that Advanced Micro Devices (NASDAQ:AMD) is in “advanced talks” to buy its rival Xilinx. Overall, the deal between the two chipmakers would be valued around $30 billion. And it would be the latest lucrative acquisition in the semiconductor sector.
Moreover, according to the article, people close to the deal say it could be completed by some time next week. However, “there is no guarantee they will get there, especially given that the talks had stalled before recently restarting.”
AMD is one of the companies that have been navigating the novel coronavirus pandemic very well the past few months. In fact, shares of AMD stock are up 112% since their March low. This is likely due to the fact that its customer base still needs the company’s wide range of offerings, even during a lockdown. Working from home requires the chip infrastructure that AMD supports. Essentially, consumers need AMD and its peers to navigate the pandemic. Plus, AMD has still released a handful of new products since the pandemic began.
Additionally, Xilinx creates programmable chips used in data centers for specific areas such as artificial intelligence and telecommunications. Thus, by possibly acquiring Xilinx, AMD would be able to boost those areas of its own business.
Shares of XLNX stock were up 12.5% as of Friday morning.
On the date of publication, Nick Clarkson did not have (either directly or indirectly) any positions in the securities mentioned in this article.
Nick Clarkson is a Web Editor at InvestorPlace.