In a largely expected development, AMD has entered into a definitive agreement to sell ZT Systems' data center infrastructure and manufacturing business to Sanmina for $3 billion.
As per the terms of the deal, Sanmina will pay AMD $2.25 billion in cash, and a $300 million premium equally divided between cash and equity ($150 million each). Additionally, Sanmina will also make a contingent payment of $450 million to the chipmaker, based on the financial performance of the acquired assets over the next three years.
For its part, AMD has designated Sanmina a preferred new product introduction (NPI) manufacturing partner for its cloud rack and cluster-scale AI solutions.
This agreement is expected to achieve closure by the end of 2025. Do note that AMD had closed its $4.9 billion acquisition of ZT Systems only back in March 2025. Since then, the chipmaker had been working on selling ZT parts in lucrative deals.
Bear in mind that AMD's ~$3 billion deal for ZT Systems' data center manufacturing business falls at the low-end of analysts' estimates, with Loop Capital recently predicting a ~$3.5 billion price tag.
Meanwhile, as we noted last week, AMD has now increased its share buyback authorization by $6 billion. When coupled with the ~$4 billion in existing authorizations (as of the 29th of March 2025), the company's total outstanding buyback authorization now equals ~$10 billion. This development comes as AMD bought $749 million worth of its shares in the first quarter of 2025.
Also, HUMAIN, the AI-focused subsidiary of Saudi Arabia's Public Investment Fund (PIF), has now inked an agreement with AMD to create a $10 billion fund to "deploy 500 megawatts of AI compute capacity over the next five years."
Under the terms of the deal, HUMAIN will deal with the data center infrastructure buildout and the attendant energy requirements in Saudi Arabia, while AMD will provide its AI compute portfolio and the AMD ROCm™ open software ecosystem. The duo plan to activate their first "multi-exaflop capacity" data center in Saudi Arabia by early 2026.
About the author: Writing is my one incontrovertible passion. Over the past six years, he has authored over 2,200 distinct articles on financial and tech-related topics, spanning nearly 1 million words. And he has been a member of Wcctech mobile team since 2025. As an alumnus of the University of Toronto, Rotman Commerce Program, I bring nuance, in-depth knowledge, and a unique perspective to every topic that I cover. When I'm not writing, I'm traveling the world, exploring hidden confectionaries and restaurants as an aspiring food connoisseur.
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