Despite a slight decline in AMD's microprocessor market share to 21.1%, the company remains focused on long-term growth and strategic initiatives.

However, AMD faces challenges from ongoing U.S.-China trade tensions, with new export license requirements projected to reduce revenue by $1.5 billion for 2025.

By retaining its engineering team and transferring manufacturing responsibilities, AMD aims to enhance its internal design capabilities while streamlining R&D investments.

AMD plans to further discuss its rack-scale strategy at an AI event scheduled for June 2025, indicating its commitment to advancing in the AI market.

Morgan Stanley & Co. is acting as AMD's exclusive financial advisor for this transaction, while Latham & Watkins LLP serves as legal advisor.

The announcement came amidst a decline in tech stocks, influenced by broader market factors, including a downgrade by Moody's.

Sanmina has announced its intention to acquire ZT Systems' data center infrastructure manufacturing business from Advanced Micro Devices (AMD) for up to $3 billion, comprising $2.55 billion in cash and a contingent consideration of $450 million.

This acquisition aligns with AMD's strategy to retain ZT's design and customer enablement teams, which will enhance AI solutions for cloud customers.

AMD's Executive Vice President, Forrest Norrod, highlighted that the partnership aims to improve market speed and quality within the AI ecosystem.

The sale occurs amid scrutiny of the tech sector, particularly regarding how data center infrastructure supports AI and cloud computing, which are closely linked to cryptocurrency mining.

AMD's GPUs are widely used in cryptocurrency mining operations, making this deal particularly significant for crypto traders.

Following the announcement, trading volume for AMD surged by 28% to 15.3 million shares in the first hour, reflecting increased market activity.