Why Is AMD Stock Trading Higher On Monday?Advanced Micro Devices, Inc (NASDAQ: AMD) stock is trading higher Monday after the chip designer forged an agreement to acquire ZT Systems.AMD agreed to acquire ZT Systems, a provider of AI infrastructure for hype - Advanced Micro Devices (NASDAQ:AMD)
Summary
Advanced Micro Devices, Inc AMD stock is trading higher Monday after the chip designer forged an agreement to acquire ZT Systems. AMD agreed to acquire ZT Systems, a provider of AI infrastructure for hyperscale computing companies, in a cash and stock transaction valued at $4.9 billion, including an earnout payment of up to $400 million. AMD will seek a strategic partner to acquire ZT Systems’ U.S. data center infrastructure manufacturing business. This acquisition also builds on the investments we have made to accelerate our AI hardware and software roadmaps.” AMD held $5.34 billion in cash and equivalents as of June 29, 2024. JPMorgan analyst Harlan Sur expects AMD to grow data center GPU revenue by over $5 billion in fiscal 2024 courtesy of market share win in server and PC CPUs.
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