Advanced Micro Devices Inc. (NASDAQ:AMD) announced on Monday its $4.9 billion acquisition of ZT Systems, highlighting the company’s aggressive expansion into the AI and data center markets, according to Goldman Sachs analyst Toshiya Hari.
The acquisition, expected to close in the first half of 2025, aims to significantly enhance AMD’s competitive edge by integrating ZT Systems’ expertise in compute, storage, and accelerator solutions tailored for cloud and telecom service providers.
Key Motivations Behind The Deal
Hari explained that the primary driver behind AMD’s acquisition of ZT Systems is the potential to bolster its presence in the AI data center market, an industry projected to be worth $400 billion by 2027.
“The acquisition of ZT Systems will bring in ~1,000 engineers with systems design and rack-scale solutions expertise that would augment AMD’s silicon ...
