Sanmina surges after AMD announces partnership with OpenAI

Shares of Sanmina (SANM) are up $53.97, or 47%, to $168.05 in pre-market trading after AMD (AMD) and OpenAI announced a six gigawatt agreement for AMD chips to power OpenAI’s artificial intelligence infrastructure. Previously, in May, Sanmina announced that it had entered into an agreement to acquire the data center infrastructure manufacturing business of ZT Systems, a provider of Cloud and AI infrastructure to hyperscalers, from AMD. “The inclusion of equity and a long-term contingency in the consideration further align Sanmina and AMD’s interests in connection with the entry into the new strategic partnership. The Sanmina equity issued to AMD will be subject to a lock-up period of 3 years, which begins at the time of closing, during which equity sales are limited to 33% in the first year, 33% in the second year, and the remaining equity in the third year,” Sanmina stated at that time.