Why Sanmina Stock Rocketed Almost 26% Higher on Monday

Core Insights - Sanmina's stock surged nearly 26% following a significant partnership announcement with AMD, which also experienced a notable increase in its stock price due to a multi-year deal with OpenAI [1][2]. Group 1: Partnership and Acquisitions - Sanmina is set to acquire AMD's data center infrastructure unit, ZT Systems, pending regulatory approval, which will allow AMD to retain ZT Systems' AI design services [3]. - AMD will collaborate with Sanmina as a preferred manufacturing partner for components essential for AI functionalities [4]. Group 2: Financial Impact - The AMD/Sanmina partnership is expected to positively impact Sanmina's non-GAAP (adjusted) earnings starting in the first year post-acquisition, with growth anticipated as synergies are fully realized over time [5].