AMD Sells Part of ZT Systems to Sanmina in $3B Deal

Okay, so get this. AMD, you know, the chip folks, just made a pretty big move. They decided to sell off the part of ZT Systems that makes all that data center stuff. Remember, they only just bought ZT Systems a little while back for like, $4.9 billion in March? Yeah, well, now Sanmina is buying that specific business for a whopping $3 billion. Crazy, right?

So, how's this $3 billion breakdown? Sanmina is paying $2.25 billion in cold hard cash upfront. Then, there's an extra $300 million premium, which is half cash and half in Sanmina stock. And get this, there's even another potential $450 million later on, depending on how well the business does over the next three years. It's kinda like a bonus if things go great, I guess?

The plan all along, apparently, was for AMD to buy ZT Systems, but then pretty quickly sell off the server manufacturing side. And they're doing just that with this Sanmina deal. This means Sanmina is now going to be AMD's partner for building those high-tech AI computer systems. Pretty interesting switch-up, huh?

Oh, and speaking of switches, maybe you're looking to make a switch yourself, like finding some freelance help? You could totally check out Fiverr if you need someone to help with writing, design, or whatever else. Just a thought!

Anyway, back to AMD. Their shares were actually down a bit, about 2.7%, in premarket trading after this news came out. I mean, selling off a big chunk of a recent purchase can sometimes make investors a little nervous, idk?

It makes you wonder, what will AMD focus on now with this part of ZT Systems gone? And how will this partnership with Sanmina shake things up in the world of AI computing? It'll be interesting to see how it all plays out over time, won't it?