AMD buys a network technology producer for $1.9 billion

Advanced Micro Devices Inc. (AMD.US) acquires Pensando Systems Inc., a software company that provides cloud solutions or computing services for secure and fast environments for highly advanced applications. Pensando's current customers include Goldman Sachs and Microsoft Azure. AMD will pay nearly $1.9 billion to acquire Pensando. The deal is expected to close in the second quarter, according to AMD. As commented by AMD Chief Executive Officer Ms. Lisa Su, the acquisition of the Pensando business gives the company a leading distributed services platform for its portfolio of advanced processors.

AMD (AMD.US), D1 interval. Shares of the American technology giant did not react significantly to the announcement of the acquisition of Pensando, and the stock is still under pressure from last week's decline. From a broader point of view, the stock is trading in a medium-term downtrend. The demand side unsuccessfully tried to break out above this limit, and now the quotes went down near the local support line (green line). Source: xStation 5