Sanmina (SANM) stock saw major gains on Monday despite a lack of news from the integrated manufacturing solutions company. While there are no press releases or Securities and Exchange Commission (SEC) filings that explain its rise, that doesn’t mean SANM stock is up for no reason. Rather than rising on its own news, Sanmina shares are up alongside an announcement from Advanced Micro Devices (AMD).
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AMD revealed a deal with ChatGPT maker OpenAI for up to 6 gigawatts of its graphics processing units (GPUs). OpenAI signed this deal to meet its growing need for AI chips. To go along with it, the company has been issued warrants that, if exercised, could grant it up to a 10% stake in AMD. Today’s news sent shares of AMD stock more than 25% higher in pre-market trading.
While Sanmina isn’t mentioned in the deal, investors are boosting SANM stock higher due to its ties to AMD. Sanmina reached an agreement to buy the data center infrastructure manufacturing business of ZT Systems from AMD for $2.55 billion earlier this year. That deal is set to close by the end of 2025. As part of this agreement, AMD has made Sanmina its preferred NPI manufacturing partner for the deployment of AMD AI rack and cluster-scale systems for cloud customers. Considering AMD’s new deal with OpenAI, it makes sense investors would take an interest in Sanmina as well.
Sanmina Stock Movement Today
Sanmina stock was up 59.29% in pre-market trading on Monday, following a 2.28% dip on Friday. The shares have rallied 50.76% year-to-date and 69.81% over the past 12 months.
Is Sanmina Stock a Buy, Sell, or Hold?
Turning to Wall Street, the analysts’ consensus rating for Sanmina is Moderate Buy, based on one Buy rating and one Sell rating over the past three months. With that comes an average SANM stock price target of $135, representing a potential 18.34% upside for the shares.
