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SAN JOSE - Sanmina Corporation (NASDAQ:SANM) announced Monday it has completed its acquisition of ZT Systems’ data center infrastructure manufacturing business from AMD (NASDAQ:AMD), a prominent player in the semiconductor industry with annual revenue of $29.6 billion, ahead of schedule. According to InvestingPro data, AMD currently commands a market capitalization of $410.45 billion.
The acquisition positions Sanmina to expand its presence in the cloud and AI infrastructure market. As part of the agreement, Sanmina and AMD have established a strategic partnership where Sanmina will serve as a U.S.-based preferred manufacturing partner for AMD’s cloud rack and AI solutions. AMD’s stock has shown remarkable strength, trading near its 52-week high with a 141% price return over the past six months.
"The addition of ZT Systems significantly enhances our scale and deepens our engagement within the fast-growing Cloud and AI end-market," said Jure Sola, Chairman and CEO of Sanmina Corporation, in a press release statement.
The transaction brings ZT Systems’ manufacturing facilities in New Jersey, Texas and the Netherlands into Sanmina’s global manufacturing network. These facilities feature advanced liquid cooling capabilities designed for data center infrastructure.
The acquisition adds manufacturing capacity specifically tailored for cloud and AI infrastructure and is expected to strengthen Sanmina’s relationships with hyperscale cloud providers.
Sanmina will discuss the acquisition during its fourth quarter and fiscal year 2025 results conference call scheduled for November 3, 2025.
The financial terms of the transaction were not disclosed in the company’s announcement.
In other recent news, Advanced Micro Devices (AMD) is expected to approach the high end of its $9 billion revenue guidance for the third quarter, according to UBS. The firm projects that AMD’s data center GPU revenue will reach approximately $1.7 billion for the quarter. BofA Securities has also raised its price target for AMD to $300 from $250, maintaining a Buy rating, following announcements at the 2025 OCP Conference about upcoming product launches. Meanwhile, Bernstein SocGen Group reiterated a Market Perform rating with a $200 price target for AMD, highlighting the company’s strategic move with OpenAI.
In a different development, IBM successfully ran a quantum computing algorithm on standard AMD chips, marking progress toward commercializing quantum computers. In related semiconductor industry news, Cantor Fitzgerald raised its price target for Intel to $45 from $24.80, maintaining a Neutral rating. The firm had previously added Intel as a "Tactical Long" when the stock was trading at $24.80. These updates reflect ongoing strategic maneuvers and forecasts within the technology sector.
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