Shares of Advanced Micro Devices Inc. AMD,
rose 0.2% in premarket trading after the semiconductor company announced a deal to buy privately-owned Pensando for about $1.9 billion. AMD wants the deal for the computing, networking and security services provider, expected to close in the second quarter, to expand its data center offerings. “Building a leading data center with the best performance, security, flexibility and the lowest total cost of ownership requires a wide range of computing engines,” said AMD Chief Executive Lisa Su. “Today, with our acquisition of Pensando, we are adding an industry-leading distributed services platform to our high-performance CPU, GPU, FPGA and adaptive SoC portfolio.” Shares of AMD are down 24.8% through Friday, while the PHLX Semiconductor Index SOX,
has lost 14.7% and the S&P 500 SPX,
has fallen by 4.6%.