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AMD May Acquire ATI Technologies


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Analyst: AMD, ATI May Merge

The research analysts at RBC Capital Markets believe that a tie-up between graphics chip manufacturer ATI (provider of GPUs for Wii, GCN, and Xbox 360) and microprocessor firm AMD is likely to happen in the near future.

According to RBC Capital Markets, chip maker and Intel rival Advanced Micro Devices (AMD) may be looking to acquire graphics technology company ATI Technologies, which provides the GPUs for the Nintendo GameCube, the forthcoming Wii and Microsoft's Xbox 360.

Analyst Apjit Walia believes that the PC food chain dictates that such a buyout is likely to take place, as graphics companies are often thought to be acquisition targets for microprocessor companies.

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