Xilinx soars 17% on report rival AMD is in talks to buy it for $30 billion - Business Insider

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Xilinx soars 17% on report rival AMD is in talks to buy it for $30 billion

A deal could come to fruition as soon as next week and bring the latest major takeover in the semiconductor industry, according to the report. Still, there is no guarantee an agreement will be reached, and talks previously froze before a recent restart, sources told The Journal.

Xilinx closed Thursday with a market cap of nearly $26 billion, making the proposed deal an enticing proposal for its shareholders. The early Friday rally placed shares at their highest point since July 2019.

AMD shares sank as much as 3% in early trading. Still, they are are up nearly 90% year-to-date as investors flood tech stocks amid virus-fueled demand. Xilinx produces chips used in data centers and 5G communications base stations. Its shares tumbled through 2019 after US-China trade tensions limited shipments from Chinese tech giant Huawei. The firm accounts for as much as 8% of Xilinx's revenue.

Should the merger go through, AMD would gain a stronger foothold in the communications technology business and better compete with rivals such as

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+12.5% XLNX (Xilinx $119.51, +13.27) -- Advanced Micro Devices in advanced talks to acquire - WSJ

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