AMD sells ZT Systems' manufacturing business to Sanmina for $3 billion, retaining AI expertise.

From Nasdaq: 2025-05-19 07:41:00

AMD has sold ZT Systems’ manufacturing business to Sanmina for $3 billion, retaining design expertise for AI solutions. The deal includes a contingent payment of up to $450 million. This move aims to enhance AI deployment for cloud customers and establish Sanmina as a manufacturing partner for AMD’s AI offerings. The transaction is expected to close by the end of 2025, pending regulatory approvals.

The sale of ZT Systems may strengthen AMD’s financial position and enhance its AI solution capabilities. Retaining ZT’s design expertise will enable AMD to deliver high-quality cloud services faster. Partnering with Sanmina aligns with AMD’s strategy for manufacturing efficiency and product deployment in the AI sector. However, regulatory approvals and closing conditions could impact the timing and success of the transaction, potentially affecting AMD’s strategic goals.

Members of Congress have traded $AMD stock 15 times in the past 6 months, with 11 purchases and 4 sales. Representative Marjorie Taylor Greene has traded it 9 times, while Representative Robert Bresnahan and Representative Jefferson Shreve have traded it twice and thrice, respectively. Senator Markwayne Mullin sold up to $100,000 worth of $AMD stock.

AMD insiders have traded $AMD stock 8 times in the past 6 months, with 1 purchase and 7 sales. Lisa T Su, Mark D Papermaster, and Philip Guido are among the insiders who have made transactions. Hedge fund activity shows significant changes in $AMD stock ownership, with some institutions adding shares while others decreasing their positions.

Wall Street analysts have issued buy ratings on $AMD stock, with 7 firms issuing buy ratings and 1 firm issuing a sell rating. Analyst targets for $AMD stock have a median target of $140. Notable recent price targets include $130 from Barclays, $150 from UBS, and $110 from Melius Research. The diversity of analyst ratings and price targets reflects varying perspectives on $AMD’s potential performance.

AMD has entered a definitive agreement to sell ZT Systems’ manufacturing business to Sanmina for $3 billion in cash and stock, with a contingent payment of up to $450 million. Sanmina will become AMD’s preferred manufacturing partner for cloud AI solutions. This move aligns with AMD’s strategy to strengthen manufacturing capabilities and accelerate AI deployment for cloud customers.



Read more at Nasdaq: AMD Announces $3 Billion Sale of ZT Systems Manufacturing Business to Sanmina, Retaining AI Expertise for Cloud Solutions