AMD CEO Lisa Su says chip giant's $35 billion acquisition of Xilinx is 'a good deal'
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AMD CEO Dr. Lisa Su struck a very upbeat tone Monday on what the newly acquired Xilinx will mean to the chip giant's top and bottom lines.
"This acquisition is accretive in the first year for gross margins, for earnings per share and for free cash flow. It's a good deal overall. And when we look at growth rates, what we said at the time of the acquisition is that we felt we could grow significantly ahead of the industry — 20% plus for the next few years. And we still believe that's the case," Su said on Yahoo Finance Live from Xilinx's campus.
Su was set to give a speech to 5,000 Xilinx employees.
Announced in October 2020, AMD said Monday it closed on its $35 billion acquisition for Xilinx.
The transaction — the largest in AMD's 53-year history — gives the company significant expertise in the programmable chip market. Chips of this kind will prove integral as AMD looks to continue taking market share away from Intel in cloud computing workloads and data centers.
Su said AMD will update its financial model "in the coming months."
Several weeks ago, AMD outlined 31% revenue growth for 2022 and gross profit margins of 51%.
"From a financial standpoint and technology standpoint and customer standpoint, we think there are a lot of positives for us as we come together," Su added.
AMD shares rose 4% Monday. The company's ticker page was the third most visited on Yahoo Finance as of noon.
Brian Sozzi is an editor-at-large and anchor at Yahoo Finance. Follow Sozzi on Twitter @BrianSozzi and on LinkedIn.
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