Stifel reiterated a Buy rating and $200 price target on AMD (AMD) after the company agreed to acquire ZT Systems, a provider of AI and general-purpose compute infrastructure for cloud and telecom service providers. While the firm believes this deal makes sense as a next step for AMD, it also appears to signal that Nvidia (NVDA) is moving further ahead with an integrated AI cluster approach, the analyst tells investors in a research note. The firm added that it believes AMD is likely positioning itself more competitively as system design complexities continue to accelerate in lock-step with time-to-market demands.
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