As much as analysts aren't always right, they aren't always wrong, either. In May, RBC Capital Markets analysts said microprocessor manufacturer AMD was considering an acquisition of graphics-card maker ATI Technologies.

　　Today, Reuters is reporting that AMD is close to a deal that would see it acquire ATI for $5.5 billion, citing "a source familiar with the situation" for the info. The source said a deal could be announced as soon as Monday.

　　In suggesting the purchase in May, the RBC analysts noted that the idea of Intel or AMD purchasing a graphics-chip maker has been batted around for a while, and pointed out AMD's stated intent to increase its capacity in the coming years. As for ATI being chosen for acquisition instead of a rival company like Nvidia, the pair called ATI "a rare buy in the semiconductor space right now."

　　ATI stock has lost almost 5 percent of its value since the end of May, but shares closed up more than 5 percent today to close at $16.56. Meanwhile, AMD has been taking a beating of late, losing more than 40 percent of its share value since May. Today alone, the stock dropped almost 16 percent to close at $18.26, and is down further in after-hours trading.