Wells Fargo sees AMD‘s (AMD) acquisition of ZT Systems as a move to bolster its artificial intelligence systems strategy as Nvidia (NVDA) becomes an increasingly vertically integrated player. The deal is expected to be accretive on a non-GAAP basis by the end of 2025, the analyst tells investors in a research note. Wells says ZT has a long relationship with hyperscale customers and an emphasis on custom-built solutions. It highlights that ZT Systems has pending patents for liquid cooling systems. Wells has an Overweight rating on AMD with a $205 price target.
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