According to Reuters, AMD, the chipmaker for both x86 and graphic chip is mulling a split to turn around the company which sees declining stock price and profits over the years.


So far, these are preliminary as AMD has asked a consulting firm to help it review its options and draw up scenarios on how a break-up or spin-off would work, the people said this week, asking not to be identified because the deliberations are confidential.

One option was to spin off the graphics arm which formerly was ATi from it’s server business. This might work as graphics is still a lucrative business.

As for the next move, AMD is now focusing on gaming consoles and low power servers. As for desktop x86, it seems to be warming up lately with the newer APUs.

AMD’s net loss widened to $180 million, or 23 cents per share, in the quarter that ended March 28, from $20 million, or 3 cents per share, a year earlier. It also missed on revenue expectations. It is forecasting a return to profitability in the second half of the year.

AMD 2.58 ▲ 0.06 (2.38%)

By Harry