Xbox 2 Rumor Sends ATI Shares Higher

In a slightly bizarre turn of events, a rumor that appeared to start on UK games site Spong.com, claiming that ATI may be providing the graphics chip for the Xbox 2, replacing current provider Nvidia, has ended up significantly affecting ATI's stock price, sending it up over 5 percent on a day when many other tech stocks lost ground. As an analyst quoted in the Yahoo article suggests, "..we think it's a decision that has not been made yet and it is purely speculation to guess as to who may or may not win." But that doesn't seem to have stopped investors acting as the rumor gathered steam and percolated through more major news sites.

Comments

First post

[Anonymous Coward]

It's sad that investors react so strongly to a rumor that the second place console maker might use a product in their next console.

Then again, I've always said that the XBox is just a very expensive piece of marketing for the XBox2.

Heh...

[mbogosian]

...ATI may be providing the graphics chip for the Xbox 2, replacing current provider Nvidia, has ended up significantly affecting ATI's stock price....

That is until investors figure out that ATI will get screwed when Microsoft leaves them with a bunch of useless inventory and no recourse just like they did with nvidia....