By Katherine Hamilton
Sanmina shares declined after the company said it agreed to acquire a data-center infrastructure manufacturing business from Advanced Micro Devices.
The stock fell 5.5% to $79.89 on Monday following the news, though shares are still up 6% this year. AMD shares were down 2.5% to $114.22 on Monday.
Manufacturer Sanmina said it would pay up to $3 billion to chipmaker AMD for the manufacturing unit of ZT Systems.
AMD bought ZT Systems for $4.9 billion in March. It said it planned to break up the company, as it was actively engaged with potential buyers for the manufacturing segment. AMD plans to hold onto ZT's artificial intelligence systems design business, which provides cloud and AI infrastructure to hyperscalers.
ZT Systems had about $10 billion in annual revenue at the time AMD announced its plan to buy it, the Wall Street Journal reported. On Monday, Sanmina said ZT's annual revenue run-rate is now $5 billion to $6 billion.
When asked about the difference in sales during a call Monday, Chief Executive Jure Sola said Sanmina is focused on the future and ZT's capacity to grow.
Write to Katherine Hamilton at katherine.hamilton@wsj.com
(END) Dow Jones Newswires
May 19, 2025 15:00 ET (19:00 GMT)
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