Advanced Micro Devices, Inc (NASDAQ:AMD) discussed divesting ZT Systems’ data center infrastructure production capabilities to Taiwan’s Compal Electronics Inc, Inventec Corp, Pegatron Corp, and Wistron Corp, as disclosed earlier. Nevertheless, AMD had also remained adamant about not changing its focus priority from its primary GPU roadmap.

The assets could be worth $3 billion-$4 billion, including debt, Bloomberg reported, citing unnamed sources familiar with the matter.

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The server manufacturing operations had ~$10 billion in revenue over the 12 months before AMD’s purchase.

Some of the plants are in New Jersey and Texas, making them potentially attractive to avoid tariffs and other measures from U.S. President Donald Trump’s administration.

The Nvidia Corp (NASDAQ:NVDA) rival agreed to acquire the data center manufacturing plants in 2024.

Unlike Nvidia, AMD’s stock value lost over 37% in the last 12 months as it failed to capitalize on the AI frenzy.

Investors can gain exposure to AMD through iShares Semiconductor ETF (NASDAQ:SOXX) and EA Series Trust Strive US Semiconductor ETF (NYSE:SHOC).

Price Action: AMD stock closed lower by 2.92% to $110.84 on Friday.

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