Intel Corporation (NASDAQ:INTC) has refuted claims that it has reached an agreement for the licensing of Advanced Micro Devices, Inc. (NASDAQ:AMD) graphics chip technology. The rumor first reported by tech news site, Fudzilla, alleged that the chip giant had inked the deal as a replacement for a previous licensing deal with NVIDIA Corporation (NASDAQ:NVDA) that expired in March.
Intel-AMD Deal
“The recent rumors that Intel has licensed AMD’s graphics technology are untrue, “said an Intel Spokesperson.
Prior to Intel refuting the claims, AMD shares were rallying by 12% as Intel stock edged lower.
AMD is yet to comment on the matter even on its top executives making a presentation to analysts and investors. During the presentation, the executives only outlined a new strategy that seeks to push the company into the development of the Ryzen central processing chip. The executives also unveiled a new supercharged version of the processor that will put it in direct competition with Intel’s anticipated Core i9.
The fact that the executives took time to reiterate that their latest chip capabilities would provide them a strategic advantage against Intel and NVidia all but crushed hopes of any deal happening. The company’s stock consequently dropped by 12% as the Street remained cautious of any deal materializing.
Intel-AMD Close Relation
Intel and AMD have been close partners over the years, having worked together on a number of CPU industry standards. A deal between the two would thus was not such a surprise given that they have a long-standing X86-64 cross-licensing agreement.
AMD, unlike Intel, would be the biggest beneficiary of such a deal given that it stands to gain additional cash to sustain its growth momentum. Over the past few quarters, the company has significantly cut losses and made important strategies as it continues to gain share in the graphics business.
Intel is also aggressively bolstering its graphics unit, having become wary of the threat posed by AMD’s Ryzen family that is slowly eating market share. According to recent reports the company’s next flagship processor, Core i9 is around the cored and will feature 12-core with 24 threads and 16.5mb L3 cache.
Intel Stock was down by 2.18% in Wednesday trading session ending the day at lows of $35.04 a share.