AMD Stock Rose After Company Closed Buy of Xilinx

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Advanced Micro Devices

said Monday morning that it completed its all-stock acquisition of

Xilinx, and AMD CEO Lisa Su added the chair title on Monday.

AMD (ticker: AMD) stock rose 1% to close at $114.27 on Monday, in the face of a lackluster day for the broader market, with the

S&P 500 index falling 0.4%. AMD stock was coming off its worst one-day drop since 2020 on Friday, when it fell 10%. The all-stock nature of Xilinx deal, which was announced on Oct. 27, 2020, likely added to selling pressure during Friday’s broader market selloff.

The company said in a news release that it expects the deal to benefit non-GAAP earnings and margins in the first year.

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Su said in a news release that Xilinx brings with it industry-leading field programmable gate arrays, adaptive system on a chips, artificial intelligence engines and software expertise, “that enable AMD to offer the strongest portfolio of high-performance and adaptive computing solutions in the industry and capture a larger share of the approximately $135 billion market opportunity we see across cloud, edge and intelligent devices.”

Su succeeds John Caldwell as chair. Caldwell will now serve as the AMD board’s lead independent director. Xilinx directors Jon Olson and Elizabeth Vanderslice also joined the new-look AMD board.

“As CEO and chair, Lisa will now have an ability to drive an even sharper focus for AMD and create greater shareholder value,” Caldwell said in a news release.

Xilinx shareholders received 1.7234 AMD shares for each Xilinx share they held. Former Xilinx CEO Victor Peng will become president of AMD’s new Adaptive and Embedded Computing Group.

AMD stock is down 18% year to date but is still up 22% in the past 12 months.

Write to Connor Smith at [email protected]