Sightful Invest
  • Business
  • Investing
  • Politics
  • Stock
Top Posts
President Trump announces multiple judicial nominees, accuses court...
Top House committees accuse Dem fundraising giant of...
Trump to rename Persian Gulf the Arabian Gulf...
‘New sheriff in town’: State finance leader rallies...
Trump announces MAHA advocate Casey Means will be...
Trump offers to help India, Pakistan amid growing...
Lone Republican becomes only lawmaker to vote against...
Trump halts military strikes on Houthis but expert...
Retired judges criticize Trump admin over arrest of...
REAL ID deadline comes and goes – airports...
  • Business
  • Investing
  • Politics
  • Stock

Sightful Invest

Investing

AMD to Acquire ZT Systems for US$4.9 Billion to Enhance AI Infrastructure

by admin August 20, 2024
August 20, 2024
AMD to Acquire ZT Systems for US$4.9 Billion to Enhance AI Infrastructure

Advanced Micro Devices (AMD) (NASDAQ:AMD) is looking to further enhance its artificial intelligence (AI) infrastructure with the acquisition of AI service provider ZT Systems for US$4.9 billion.

Announced on Monday (August 19), the definitive agreement is AMD’s latest move to reinforce its position in the data center market. In the last year it has spent over US$1 billion to enhance its AI ecosystem and software capabilities as it seeks to better compete with AI powerhouse NVIDIA (NASDAQ:NVDA), which offers more complete AI systems.

The deal, set to be completed in the first half of 2025, will be financed with 75 percent cash and 25 percent stock.

AMD expects the purchase to be accretive to its non-GAAP earnings by the end of next year. Reuters quotes CFO Jean Hu as saying that the acquisition is seen enhancing the company’s revenue growth starting in 2026.

ZT Systems is known for its expertise in designing and deploying large-scale data center infrastructure. The company’s systems are used by major hyperscale computing providers, making it a key player in the data center industry.

As mentioned, the acquisition aligns with AMD’s strategy of expanding its AI hardware and infrastructure offerings, which are critical for handling the increasing demands of AI applications and cloud computing.

AMD’s CEO, Lisa Su, highlighted the strategic importance of the acquisition, stating that ZT Systems’ capabilities will accelerate the deployment of AMD’s AI graphics processing units at scale.

‘Combining our high-performance Instinct AI accelerator, EPYC CPU, and networking product portfolios with ZT Systems’ industry-leading data center systems expertise will enable AMD to deliver end-to-end data center AI infrastructure at scale with our ecosystem of OEM and ODM partners,’ she added in the company’s press release.

As part of the transaction, AMD plans to divest ZT Systems’ manufacturing business and will seek a strategic partner to acquire this segment. However, the acquisition will retain around 1,000 of ZT Systems’ 2,500 employees.

ZT Systems’ CEO, Frank Zhang, will join AMD and oversee the integration of the company’s design and customer enablement teams within AMD’s Data Center Solutions Business Group.

Shareholders reacted positively to the news, with AMD’s share price ending Monday up 12.46 percent.

Securities Disclosure: I, Giann Liguid, hold no direct investment interest in any company mentioned in this article.

This post appeared first on investingnews.com

previous post
Is Now a Good Time to Invest in Hydrogen? (Updated 2024)
next post
Odienné Results Confirm Mineralised Structures, Extend Targets and Define New Anomaly

You may also like

Joe Mazumdar: Silver and Rare Earths Stocks, Plus...

July 23, 2024

Uranium Stocks: 5 Biggest Companies

January 9, 2025

Blue Sky Uranium Closes Fully-Subscribed Non-Brokered Private Placement

September 5, 2024

Strong continuity of high-grade gold in Sandstone drilling

March 4, 2025

Clarification to Chariot’s ASX Announcement dated 30 August...

September 4, 2024

Finlay Minerals Enters into Earn-In Agreements with Freeport...

April 19, 2025

Athena Gold Upsizes Flow-Through Private Placement, Announces Concurrent...

April 22, 2025

Freegold Intersects 3.06 g/t Au over 42 Metres...

October 8, 2024

Forward Water Technologies Announces September 30, 2024 Financial...

November 29, 2024

Charbone Hydrogene Annonce Les Resultats Financiers T2 2024

August 29, 2024

Recent Posts

  • President Trump announces multiple judicial nominees, accuses court system of blocking him from doing his job
  • Top House committees accuse Dem fundraising giant of facilitating ‘bad actors’ in bombshell DOJ letter
  • Trump to rename Persian Gulf the Arabian Gulf ahead of US-Iran nuclear talks, Middle East trip: report
  • ‘New sheriff in town’: State finance leader rallies around key Trump victory saving ‘taxpayer dollars’
  • Trump announces MAHA advocate Casey Means will be new surgeon general nominee

    Become a VIP member by signing up for our newsletter. Enjoy exclusive content, early access to sales, and special offers just for you! As a VIP, you'll receive personalized updates, loyalty rewards, and invitations to private events. Elevate your experience and join our exclusive community today!


    By opting in you agree to receive emails from us and our affiliates. Your information is secure and your privacy is protected.

    Categories

    • Business (710)
    • Investing (2,051)
    • Politics (2,543)
    • Stock (4)
    • About us
    • Privacy Policy
    • Terms & Conditions

    Disclaimer: sightfulinvest.com, its managers, its employees, and assigns (collectively “The Company”) do not make any guarantee or warranty about what is advertised above. Information provided by this website is for research purposes only and should not be considered as personalized financial advice. The Company is not affiliated with, nor does it receive compensation from, any specific security. The Company is not registered or licensed by any governing body in any jurisdiction to give investing advice or provide investment recommendation. Any investments recommended here should be taken into consideration only after consulting with your investment advisor and after reviewing the prospectus or financial statements of the company.

    Copyright © 2024 Sightful Invest. All Rights Reserved.