Xilinx stock jumped 17% during Friday’s pre-market trade on news that AMD could soon acquire the San Jose-headquartered chip maker for $30 billion.
Until now, XLNX had returned just 5% in 2020 (just a touch more than the S&P 500). AMD stock, on the other hand, fell 4% — but it’s still up more than 70% year-to-date.
XLNX’s gains can be attributed to speculation that the reported $30 billion acquisition figure would eventually become its market value.
The market valued XLNX at $25.89 billion at Thursday’s close, and a 17% increase in share price boosts that number beyond $32 billion. This aligns more with AMD’s reported $30 billion-plus bid for XLNX.
Whether XLNX’s pre-market gains hang around once the day’s regular trade opens is another story, however.
As noted by WSJ, the deal would be 2020’s second largest acquisition, after NVIDIA’s $40 billion purchase of UK-headquartered Arm Holdings, and before Analog Devices $20 billion deal with Maxim Integrated Products — capping off a what’s already a big year for semiconductor buyouts.
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