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Amazon Invests $84M in AMD Through ZT Systems Acquisition
ByAinvest
Friday, May 9, 2025 1:51 am ET1min read
Amazon has revealed an $84 million stake in AMD through its acquisition of ZT Systems. Amazon holds 822,234 shares of AMD, while Inventec received over 8.3 million AMD shares in connection with the deal. The investment was disclosed on the same day AMD reported strong Q1 2025 results, with a 57% YoY surge in its Data Center segment.
Amazon.com Inc. (AMZN) has revealed a significant investment in Advanced Micro Devices Inc. (AMD), following the acquisition of ZT Group International. According to recent regulatory filings, Amazon now holds 822,234 shares of AMD, valued at approximately $84.4 million [1].The investment came to light on the same day AMD reported its strong Q1 2025 results, with a 57% year-over-year (YoY) surge in its Data Center segment. The acquisition of ZT Systems, a server manufacturer, is part of AMD's ongoing business expansion [2].
As part of the acquisition, AMD issued shares to former ZT Group shareholders, including Amazon and Inventec, which received over 8.3 million AMD shares. The total distribution of shares amounts to approximately 8.3 million shares, with Amazon holding 822,234 shares and Inventec receiving 883,954 shares [1].
The investment aligns with Amazon's strategic focus on expanding its data center capabilities, leveraging AMD's advanced AI chip technology. AMD's first-quarter revenue reached $7.44 billion, with data center revenue surging 57% YoY to $3.7 billion. The strong performance in the data center segment was driven by demand for EPYC server CPUs and Instinct AI accelerators [2].
Despite the lack of specific AI accelerator sales figures in the earnings release, AMD expects "strong double-digit growth" for these products. The company's combined client computing and gaming segments also saw a 28% YoY increase in revenue, with CPU-related revenue rising 68% and gaming-related revenue declining by around 30% [2].
The investment from Amazon and Inventec underscores the growing demand for AMD's AI chip technology, particularly in the data center segment. As AMD continues to expand its AI capabilities, investors should closely monitor the company's earnings calls for more details on AI accelerator sales and the impact of export controls on gross margin.
References:
[1] https://www.benzinga.com/markets/equities/25/05/45244462/amazon-acquires-84-4-million-stake-in-amd-amid-ai-chip-expansion-export-controls
[2] https://finance.yahoo.com/news/amd-earnings-data-center-shines-125742368.html
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