AMD Sells ZT Systems Business to Sanmina

Advanced Micro Devices ( (AMD) ) just unveiled an update.

On May 19, 2025, AMD announced a definitive agreement to sell its ZT Systems data center infrastructure manufacturing business to Sanmina for $3 billion in cash and stock, with a contingent payment of up to $450 million. The transaction, expected to close by the end of 2025, aligns with AMD’s strategic plan announced in August 2024 and will make Sanmina a preferred manufacturing partner for AMD’s cloud rack and AI solutions. This move is anticipated to enhance AMD’s U.S.-based manufacturing capabilities and accelerate the deployment of AI systems for cloud customers, strengthening its position in the AI and data center markets.

The most recent analyst rating on (AMD) stock is a Hold with a $150.00 price target. To see the full list of analyst forecasts on Advanced Micro Devices stock, see the AMD Stock Forecast page.

Spark’s Take on AMD Stock

According to Spark, TipRanks’ AI Analyst, AMD is a Outperform.

AMD’s overall stock score reflects its strong financial performance and promising growth potential, particularly in the AI and data center sectors. While high valuation and technical indicators suggest caution, strategic acquisitions and positive earnings call support a favorable outlook.

To see Spark’s full report on AMD stock, click here.

More about Advanced Micro Devices

Advanced Micro Devices (AMD) is a prominent player in the high-performance computing, graphics, and visualization technology industry. For over 55 years, AMD has been at the forefront of innovation, providing technology solutions that are integral to the operations of Fortune 500 companies and scientific research institutions globally. The company focuses on developing adaptive products that push the boundaries of computing capabilities.

Average Trading Volume: 41,369,030

Technical Sentiment Signal: Buy

Current Market Cap: $190B

See more data about AMD stock on TipRanks’ Stock Analysis page.