More importance can be found in the repercussions of such a large purchase. There are concerns that AMD's debt-to-capital ratio might take a turn for the worse after the company took out a $2.5 billion term loan to cover some of the purchase. Intel and Nvidia's chummy relationship may also prove to be a stumbling block should ATI's graphics chips ever be locked out of Intel machines. Still, AMD cautiously considers the potential benefits, such as major cost reductions and an entry point into the Intel-dominated laptop arena, to be worth the price and effort.
Mr. Huang's expectations may turn out to be accurate in the long run, but in an industry that was once ruled by 3dfx Interactive (remember Glide?), anything can happen.