The, usually reliable, Forbes website is reporting that AMD may be looking into buying ATI in a move that, according to experts, makes sense.

At the root of the story lies a recent AMD statement claiming that the company aims to ...increase capacity over the next few-years.... This has led to speculation about how the company plans to achieve such a target and the most obvious way is through an acquisition. ATI appears to be the most eligible target and is described by analysts as a ...rare-buy in the semiconductor space.

It appears that the idea of a microprocessor company buying one of the two graphics companies has been on the table for some time now but the current market conditions favor an AMD attempt as Intel is looking at the communications-space instead.

AMD seems to be recovering well from Intel's recent price-cut comeback and deals, with Dell, expected later this year, should boost the company even further. According to most of the analysts questioned by Forbes an AMD-ATI merger is likely to benefit the graphics sector and boost AMD's fight against rivals, Intel.