Latest news with #Sanmina
Bloomberg
27-05-2025
- Business
- Bloomberg
Stock Movers: AMD, Apple, GM
On this episode of Stock Movers: - AMD shares rise after HSBC upgraded the chipmaker to hold from reduce. Analyst Frank Lee cites 'the recent re-rating on the back of the Saudi AI deal, as well as tariff de-escalation.' Earlier this month, it struck a deal with Sanmina, which will buy AMD's AI server assembly plants that deal is worth as much as $3 billion. - Apple rebounds after a lengthy selloff as analysts continued to digest the impact of the Trump administration's tariff policies. On Friday, President Donald Trump threatened a 25% tariff on Apple if it doesn't shift iPhone production to the US. - GM shares gain as its financing arm is out with a multi-tranche bond deal today after selling more than $2 billion of notes three months ago. Bloomberg Intelligence cites a recent study by CarEdge study that shows roughly 65% of potential new-car buyers would walk away from the market entirely if monthly payments rose just 5%.
Globe and Mail
22-05-2025
- Business
- Globe and Mail
‘Time to Ride the AMD AI Wave,' Top Analysts Bullish after ZT Systems Sale
Advanced Micro Devices (AMD) received Buy ratings from Top Wall Street analysts following its $3 billion sale of ZT Systems' manufacturing business to Sanmina (SANM). The move aligns with AMD's long-term AI strategy as it retained ZT's engineering team. Analysts see this as a key step in AMD's push toward rack-scale AI solutions, making AMD stronger against Nvidia (NVDA). Confident Investing Starts Here: Analysts Back AMD's AI Strategy with Buy Ratings Stifel analyst Ruben Roy is bullish on AMD, reaffirming a Buy rating with a $132 price target (16.3% upside). He sees AMD's sale of ZT Systems as part of its strategy to expand AI infrastructure. Roy believes that ZT's 1,200 engineers should help speed up AI system development. Also, he noted that AMD's deal with Sanmina gives it a trusted manufacturing partner for cloud and AI projects, helping AMD stay flexible. Similarly, Wells Fargo (WFC) analyst Aaron Rakers maintained a Buy rating with a $120 price target (5.7% upside), citing long-term AI potential. The deal bolsters AMD's rack-scale AI strategy, especially with Instinct MI400-series GPUs coming in 2026. Also, he noted that AMD may use Sanmina as a key manufacturing partner to speed up AI system deployment for cloud customers. Citi Analyst Sees 12% Downside in AMD Stock At the same time, a Top-rated Citi (C) analyst, Christopher Danely, assigned a Hold rating to AMD stock, with a price target of $100. The key factor influencing Danely's rating is AMD's ZT Systems sale. Originally, AMD acquired ZT Systems for $4.6 billion. However, AMD sold the manufacturing segment to Sanmina for $3 billion. The sale price was much below Citi's expected $5 billion. Nevertheless, Danely expects the deal will help AMD scale in the data center GPU market. Is AMD a Buy or Sell Now? Turning to Wall Street, AMD stock has a Moderate Buy consensus rating based on 22 Buys and nine Holds assigned in the last three months. At $126.55, the average AMD price target implies an 11.49% upside potential. See more AMD analyst ratings Disclaimer & Disclosure Report an Issue
Yahoo
21-05-2025
- Business
- Yahoo
Top Analysts Ride the AMD AI Wave Post $3 Billion ZT Systems Deal
On Tuesday, Advanced Micro Devices (NASDAQ:AMD) sold ZT Systems' manufacturing arm to Sanmina for $3 billion, retaining ZT's engineering team to support its AI infrastructure goals. Following the deal, Analysts have reshuffled their outlook. Stifel analyst Ruben Roy reaffirmed a Buy rating and raised his price objective to $132, about 16% above current levels. He argues that ZT's 1,200 engineers will accelerate development of AMD's rack-scale AI systems and that Sanmina's flexible manufacturing capabilities align well with cloud and AI deployments. Warning! GuruFocus has detected 4 Warning Signs with AMD. Wells Fargo's Aaron Rakers also maintained a Buy rating, setting a $120 target, citing AMD's long-term AI potential. He highlighted the upcoming Instinct MI400-series GPUs and expects Sanmina to speed AI system rollouts for large-scale data-center customers. In contrast, Citi's Christopher Danely kept a Hold rating with a $100 objective. Danely focused on the $1.6 billion discount between AMD's $4.6 billion acquisition of ZT and the $3 billion sale price, noting the financial haircut but acknowledging the deal could still strengthen AMD's data-center GPU scaling. Overall, analysts view the ZT divestiture as a strategic move to sharpen AMD's focus on its core chip and AI businesses, though they differ on its immediate impact on valuation and earnings. Based on the one year price targets offered by 41 analysts, the average target price for Advanced Micro Devices Inc is $128.44 with a high estimate of $200.00 and a low estimate of $75.00. The average target implies a upside of +13.15% from the current price of $113.51. Based on GuruFocus estimates, the estimated GF Value for Advanced Micro Devices Inc in one year is $162.56, suggesting a upside of +43.21% from the current price of $113.51. This article first appeared on GuruFocus. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Globe and Mail
20-05-2025
- Business
- Globe and Mail
Is AMD Stock a Buy, Sell, or Hold on ZT Systems Sale?
Advanced Micro Devices (AMD) opened in the red this morning after announcing plans of selling ZT Systems to San Jose-headquartered Sanmina (SANM) for $3.0 billion in cash and stock. However, it will retain the data center infrastructure firm's engineering team, comprising a total of 1,200 experts, for about $1.6 billion, a press release confirmed on Tuesday. AMD shares have rallied in recent weeks, partly due to the 90-day trade truce between the U.S. and China. At the time of writing, they're up more than 30% versus their April low. What ZT Divestiture Means for AMD Stock The planned divestiture of ZT Systems that is expected to close in the final quarter of 2025 could help the chipmaker streamline its focus on AI computing and cloud-based solutions. Unloading the data center infrastructure manufacturing company brings $2.25 billion in cash that strengthens AMD's balance sheet as well. Additionally, retaining ZT's engineering team will help AMD 'compete better with Nvidia in the data center GPU market via additional system experience and faster hyperscale deployment times,' as per Christopher Danely – a senior Citi analyst. AMD Shares May Still Find It Hard to Fly Despite seeing the chipmaker's divestiture of ZT as a positive, Citi maintained its 'neutral' rating on AMD shares today. Danely's $100 price target indicates potential downside of more than 10% from here. Investors should note that AMD stands to get hurt as President Donald Trump continues to make it harder for U.S. chipmakers to be in business with China moving forward. On the most recent earnings call, the company's management told investors that export controls could result in up to $1.5 billion in lost revenue this year. Plus, Intel's price cuts could threaten the chipmaker's gross margin as well in 2025, which may also make it even more difficult for AMD stock to extend gains. Should You Invest in AMD at Current Levels? Despite aforementioned challenges, other Wall Street analysts remain constructive on AMD stock for 2025. The consensus rating on Advanced Micro Devices currently sits at ' Strong Buy ' with the mean target of nearly $129 indicating potential upside of as much as 13% from current levels.
Time of India
20-05-2025
- Business
- Time of India
AMD to sell ZT Systems' server-manufacturing business to Sanmina in $3 billion deal
Synopsis AMD is selling the server-manufacturing arm of its newly acquired ZT Systems to Sanmina for $3 billion, retaining the AI design business. The deal supports AMD's aim to boost U.S.-based production, with Sanmina becoming a key partner for AI systems manufacturing.
