Key Takeaways
- Advanced Micro Devices is purchasing $150 million in Nutanix (NTNX) shares at a price of $36.26 each.
- An additional $100 million will fund collaborative engineering and marketing initiatives between the companies.
- Both firms plan to develop an open, comprehensive AI infrastructure solution targeting agentic AI use cases.
- NTNX shares spiked over 20% during premarket hours before closing with a 3.38% increase.
- Wall Street analysts believe the partnership enhances Nutanix’s position in AI and potentially increases acquisition interest.
Shares of Nutanix (NTNX) experienced a significant boost Thursday following the disclosure of a substantial collaboration with Advanced Micro Devices (AMD). The strategic alliance encompasses both direct equity participation and shared development funding amounting to $250 million.
AMD has committed to acquiring $150 million in NTNX shares at a predetermined price of $36.26 per share. This fixed-price transaction represents a direct equity investment rather than an open-market purchase, signaling strong confidence from the semiconductor giant.
Beyond the stock purchase, AMD plans to contribute an additional $100 million toward collaborative engineering initiatives and joint market development activities. The partnership aims to create what both organizations characterize as an “open, full-stack AI infrastructure platform” designed specifically for agentic AI workloads.
NTNX shares initially skyrocketed more than 20% during Thursday’s premarket session. However, once regular trading commenced, the rally moderated to approximately 3.8%, ultimately finishing the day up 3.38%.
Trading activity was substantially elevated. Over 5.4 million shares were exchanged, exceeding the three-month average daily volume of roughly 4.32 million shares.
Despite Thursday’s positive movement, NTNX remains down 22.52% since the beginning of the year and has declined 49.78% over the trailing twelve months. While the day’s advance didn’t reverse these losses, it provided a spark of optimism for shareholders.
Nutanix also delivered Q4 financial results Wednesday evening, surpassing analyst estimates for both earnings and revenue. This strong report provided additional momentum for the AMD partnership announcement.
Wall Street Weighs In
KeyBanc analyst Brandon Nispel reaffirmed an Overweight rating on NTNX while maintaining a $65 price objective. He indicated he “would be buying Nutanix as AMD investment likely sparks renewed enthusiasm” and highlighted the company’s upcoming .NEXT conference in April as a possible catalyst.
RBC Capital Markets analyst Matthew Hedberg noted the AMD collaboration “likely increases Nutanix’s AI relevance” and elevates the company’s visibility as a potential M&A target. He acknowledged that supply-chain challenges are causing extended lead times for certain clients.
AMD’s Active Week
This partnership announcement follows other significant AMD news. Earlier in the week, AMD unveiled a long-term supply agreement with Meta Platforms, which propelled AMD shares up 9% on Tuesday. That Meta arrangement included warrant provisions potentially granting Meta up to a 10% ownership position in AMD.
AMD shares retreated approximately 2% Thursday, partially reversing those earlier gains.
Nutanix President and CCO Tarkan Maner described the collaboration as reflecting “a shared vision for scalable, production-ready AI infrastructure,” emphasizing inference capabilities and agentic applications deployed across hybrid cloud environments.
In related news, Avalon GloboCare (ALBT) also experienced a sharp rally Thursday following its acceptance into the AMD AI Developer Program, demonstrating broader market enthusiasm for AMD-related partnerships.
As trading concluded Thursday, NTNX finished up 3.38%, with KeyBanc’s $65 price target still implying significant upside potential from current trading levels.
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