AMD starts putting ATI acquisition to work

First, I must admit that I was completely incredulous when I heard the rumors of AMD acquiring ATI around this time last year. Latter, I became outraged when it was announced and became incensed seeing how the share price had declined in anticipation and continued to do so. But this was then and this is now.

Since the announcement I have come to realize who this purchase was necessary to the survival of AMD and at the same time will provide it with some good weapons to fight Intel.

Listen to the Q1 CC (minute 27 and then at min 53). One of the key things that AMD can do with ATI is out-Intel Intel. How? By moving margin in the middle and top range PC market from CPUs (where it has a paltry 20% share) to GPUs where it basically shares the market with nVidia. This can be achieved by bundling.