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AMD vs Intel lawsuit leads to $1.25 billion settlement

Advanced Micro Devices’ (AMD) stock soars 22% today after reaching a settlement with rival Intel for $1.25 billion.  Intel accounts for approximately 80% of the microprocessor market for PCs and servers.  AMD and regulators have claimed that Intel has long been engaged in anti-competitive behavior with companies like Dell, providing them disincentives if they chose to offer AMD processors as options with their products.

In May of 2009, Intel was also hit with a record $1.45 billion fine from the European Union for its antitrust case decision.  Intel’s settlement with AMD provides for quarterly meetings between both parties to discuss and mediate over exclusionary practices.  AMD and Intel will also cross license their patents over the next five years.  Even with the AMD lawsuit resolved, Intel still faces separate antitrust actions in the United States, Europe and Asia.

Intel’s Stock (INTC) is unshaken by the settlement and hovers around its previous day’s close.

 


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