Despite these prospects, the deal could also present some downsides. The New York Times thinks the slowing of overall PC sales could be a challenge for a merged AMD and ATI, and the Wall Street Journal says ATI's track record is also a concern. The red team has fallen behind NVIDIA in the high-end graphics segment, and its stock price also dropped in June after a sales forecast that turned out below analysts' expectations. ATI could also face troubles from AMD, as Jon Peddie suggests: "If AMD tries to integrate the whole thing too aggressively, they will suffer the same fate as Intel did ... You need to leave ATI alone."
Some also believe AMD paid too much for ATI. The Wall Street Journal says AMD's $5.4 billion bid is "one of the largest amounts paid for a chip maker," and a ThinkEquity Partners analyst quoted by Reuters claims AMD paid "a lot more than it would have six months ago," when its stock price was significantly higher and ATI's was lower. Indeed, AMD's shares were at $42.70 back in March but plummeted to $18.26 on Friday and are now down to around $17.50. ATI's shares, on the other hand, were as low as $14.33 in March, but hit $16.48 last Friday and $19.58 today.