AMD announced today the completion of its agreement to divest the ZT Systems U.S.-based data center infrastructure manufacturing business to Sanmina. The financial terms of the deal were not disclosed. This strategic move allows AMD to concentrate on its core competencies in designing rack-scale AI solutions and customer enablement. As part of the transaction, AMD will retain the design and customer teams from ZT Systems to accelerate the deployment of AMD's AI systems for cloud customers. Sanmina will now become a preferred manufacturing partner for AMD's cloud rack and cluster-scale AI solutions, aiming to enhance the ecosystem of partners and improve time-to-deployment. There was no specific market reaction analysis available directly related to this divestiture announcement. However, the news comes as analysts maintain a positive outlook on the company, with UBS reiterating a Buy rating and a $265 price target, citing continued growth in the data center GPU business.