AMD · 10-K · 2025A · Full report
Acquisition / Divestiture / Partnership
ADVANCED MICRO DEVICES INC · 2026-02-04 · Importance 90 · Surprise 100
In March 2025 AMD completed the acquisition of ZT Systems for $3.2 billion in cash and 8.3 million shares of AMD common stock, retaining the ZT Design Business IP and employees. In October 2025 AMD sold the ZT Manufacturing Business to Sanmina for $2.4 billion in cash and 1.2 million shares of Sanmina stock, with contingent cash consideration up to $450 million payable through 2028. As part of the go-forward arrangement, Sanmina is AMD’s preferred manufacturing partner for complex AI solutions. In October 2025 AMD entered a product purchase agreement with OpenAI to deploy 6 gigawatts of AMD GPUs and concurrently issued OpenAI a warrant to purchase up to 160 million AMD shares exercisable through October 5, 2030, though no tranches vested or impacted 2025 financials.
Key facts
- In March 2025, AMD completed the acquisition of ZT Systems for $3.2 billion in cash and 8.3 million shares of AMD common stock.
- In October 2025 AMD sold the ZT data center infrastructure manufacturing business (ZT Manufacturing Business) to Sanmina for $2.4 billion in cash, subject to certain purchase price adjustments, and 1.2 million shares of Sanmina common stock.
- AMD is eligible to receive additional contingent cash consideration of up to $450 million from Sanmina contingent on certain conditions.
- Upon completion of the sale of the ZT Manufacturing Business to Sanmina in October 2025, AMD received $1.4 billion in cash, net of cash divested, and 1.2 million shares of Sanmina common stock valued at $154 million.
- In March and October 2025, AMD paid a total of $2.0 billion in cash, net of cash acquired, and issued 9.1 million shares of AMD common stock in connection with the acquisition of ZT Systems.
- AMD recorded net income from discontinued operations of $66 million in 2025, net of tax expense of $54 million, which includes results of the ZT Manufacturing Business and a $121 million change in fair value of contingent consideration liability.
Impact estimates
| metric | direction | stage | expected | basis |
|---|---|---|---|---|
| cash | negative | realized | -4.2% | In March 2025, AMD completed the acquisition of ZT Systems for $3.2 billion in cash and 8.3 million shares of AMD common stock. |
| cash | positive | realized | +3.1% | In October 2025 AMD sold the ZT data center infrastructure manufacturing business (ZT Manufacturing Business) to Sanmina for $2.4 billion… |
| cash | negative | realized | -2.6% | In March and October 2025, AMD paid a total of $2.0 billion in cash, net of cash acquired, and issued 9.1 million shares of AMD common… |
| cash | positive | realized | +1.8% | Upon completion of the sale of the ZT Manufacturing Business to Sanmina in October 2025, AMD received $1.4 billion in cash, net of cash… |
| assets | positive | realized | +0.2% | Upon completion of the sale of the ZT Manufacturing Business to Sanmina in October 2025, AMD received $1.4 billion in cash, net of cash… |
| cash | positive | contingent | +0.0% | AMD is eligible to receive additional contingent cash consideration of up to $450 million from Sanmina contingent on certain conditions. |