AMD is reportedly interested in acquiring Xilinx and has been in talks about a possible acquisition.
The Wall Street Journal first reported that the two were in talks.
The Journal said the pair were in advanced merger talks that could value Xilinx at more than $30 billion, a 16% premium to the group’s closing price on Wall Street last night. Xilinx’s data-center chips have become much more valuable since the coronavirus pandemic triggered a surge in work-from-home dynamics that have pressured companies around the world to improve their technology and storage capabilities.
AMD, meanwhile, has seen its share price rise nearly 90% so far this year, taking its market value past $100 billion, a move that gives the chipmaker substantial firepower — despite a small net cash position of just $1.1 billion — to absorb Xilinx in an all-stock deal.
Jim Cramer said that investors don’t need to worry about AMD CEO Lisa Su spending too much on a deal, but he’s not so sure that Xilinx is fully on board.
Regardless of the how the deal works out, watch the video above to hear Cramer explain why AMD may be his best stock pick ever.