Forbes is confidently reporting that AMD may be in talks to buy ATI Technologies, claiming that an "AMD-ATI Merger Looks Likely." ATI employees have been talking and analysts are buzzing about the possibility of an AMD-ATI merger. "The synergies of this seem consistent with the recent announcements by AMD to significantly increase capacity over the next few-years. We believe ATI is a rare-buy in the semiconductor space right now given the near-term tie-up dynamics," said analyst Apjit Walia. AMD and ATI are already closely linked together as ATI provides integrated chipsets for AMD desktop and notebook chip offerings. ATI's recently announced Radeon Xpress 1100 and 1150 chipsets provide DX9-level integrated graphics capabilities for AMD's new AM2 processors. And chances are if you purchase an AMD based notebook, you’re going to find an integrated ATI chipset under the keyboard. But while ATI has the upper hand in the mobile sector with AMD systems, NVIDIA clearly is the leader on the desktop side of things. It remains to be seen what an AMD-ATI merger would do for the desktop market.