AMD’s stock sinks, Xilinx soars after WSJ report of advanced merger talks

Shares of Advanced Micro Devices Inc.
AMD,
-0.20%
sank 5.2% in premarket trading Friday, while Xilinx Inc.
XLNX,
+0.15%
soared 17%, after The Wall Street Journal reported that the AMD was in advanced talks to buy rival chip maker Xilinx in a deal valued at more than $30 billion. Xilinx stock was on track to open at the highest level seen during regular-session hours since July 2019. At Thursday’s close, the company had a market capitalization of $25.89 billion, while AMD’s market cap was $101.57 billion. The WSJ report doesn’t indicate whether the deal will be in cash, stock or both. AMD’s stock has soared 88.6% year to date through Thursday, while Xilinx shares have gained 8.4%. In comparison, the PHLX Semiconductor Index
SOX,
+1.17%
has rallied 27.4% and the S&P 500
SPX,
+0.80%
has advanced 6.7%.