AMD’s $5.4 billion purchase of ATI Technologies in 2006 seemed like an odd match. Not only were the companies in separate markets, but they were on separate coasts, with ATI in the Toronto, Canada, region and AMD in Sunnyvale, California.
They made it work, and arguably it saved AMD from extinction because it was the graphics business that kept the company afloat while the Athlon/Opteron business was going nowhere. There were many quarters where graphics brought in more revenue than CPUs and likely saved the company from bankruptcy.
But those days are over, and AMD is once again a highly competitive CPU company, and quarterly sales are getting very close to the $2 billion mark. While the CPU business is on fire, the GPU business continues to do well.