Chipmaker AMD (AMD) is thinking about selling two factories in New Jersey and Texas in a deal that could be worth around $4 billion, according to Bloomberg. Indeed, several Asian companies, including Compal Electronics, Inventec, Pegatron, and Wistron, are interested in buying the factories. This potential sale is a significant development for AMD, which has been working to expand its presence in the technology industry.
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In fact, AMD bought a company called ZT Systems in 2024 for $4.9 billion. This purchase helped AMD improve its artificial intelligence technology and data center capabilities thanks to its expertise in designing cloud computing solutions, which has helped AMD’s cloud and enterprise customers deploy AI infrastructure more efficiently. Now, AMD might sell the factories it got from ZT Systems, which could suggest that there is a shift in the company’s strategy.
If the sale happens, it could be announced by the summer, specifically in the second quarter. The company will likely continue to focus on developing its technology and expanding its customer base, but the sale of these factories could have significant implications for AMD’s future growth and direction. Interestingly, AMD’s stock price is down over 2% at the time of writing.
Is AMD a Buy, Sell, or Hold?
Turning to Wall Street, analysts have a Moderate Buy consensus rating on AMD stock based on 25 Buys, 11 Holds, and one Sell assigned in the past three months, as indicated by the graphic below. After a 39% decline in its share price over the past year, the average AMD price target of $147.88 per share implies 33.6% upside potential.
