But Drew Prairie of Advanced Micro's media relations division, said the acquisition is an essential component of the company's long-term strategy to integrate Advanced Micro's microprocessors and ATI's graphics and chipsets.
Kennedy's investment strategy is to ride the momentum of usually small- or micro-cap stocks that break to a new significant high and then continue to put in new highs over the next six-week period.
If Transmeta shows signs of stealing Intel's customers, Intel could easily undercut the newcomer's prices--a strategy that has served it well over the years against rival Advanced Micro Devices amd (nyse: amd - news - people).
In Europe, for example, where regulators have an even heavier hand on the special access scales, efforts to micro-manage pricing have left incumbent providers unable to make a profit or develop any long-term strategy.