Why divestiture Is Trending Today?

AMD has sold its ZT Systems data center manufacturing unit to Sanmina, a significant move that allows AMD to focus more on high-margin chip design while Sanmina strengthens its position in the AI and data center infrastructure market. The deal, valued at around $2.4 billion, was finalized in late 2022, with AMD retaining its AI design expertise to enhance its cloud solutions. This acquisition makes Sanmina a top ally for AMD in the AI and data center space, as AMD aims to streamline its data center business and intensify its involvement in the AI rack wars.