Citigroup: AMD (AMD.US) sells ZT Systems but retains engineering team to compete with NVIDIA

According to the financial news app, AMD (AMD.US) is set to divest ZT Systems, a data center manufacturing infrastructure company, for 3 billion US dollars. However, the semiconductor company will retain ZT Systems' engineering team to help it better compete with Nvidia (NVDA.US). AMD will sell its manufacturing business to Sanmina. The transaction is expected to be completed by the end of 2025. The 3 billion dollar sale includes 2.5 billion dollars in cash and stock, as well as 450 million dollars in future payments over the next three years. Following the announcement, Citigroup maintained a neutral rating for AMD with a target price of 100 US dollars.