AMD Acquires AI Memory Optimizer MEXT, Shares Jump Nearly 7% to 52-Week High
AMD•AMD shares closed up nearly 7% after announcing the acquisition of AI-driven memory optimization firm MEXT, aimed at mitigating rising memory costs and boosting data center AI performance. This deal propelled AMD shares to a 52-week high and lifted market capitalization above $900 billion.
1. Acquisition of MEXT
AMD announced the purchase of MEXT, an AI-driven memory optimization technology company, for an undisclosed amount. MEXT’s proprietary algorithms will be integrated into AMD’s product stack to enhance memory efficiency and accelerate deployment for data center clients.
2. Strategic Benefits for AI and Cost Management
The acquisition is designed to counteract escalating memory prices while expanding AMD’s AI portfolio. Customers are expected to see improved performance, reduced ownership costs and faster time to market for AI workloads.
3. Stock Market Reaction
Shares of AMD jumped nearly 7% to reach a 52-week high of $558.37, lifting market capitalization above $900 billion. The surge reflects investor confidence in the company’s memory strategy and AI growth prospects.
4. Analyst Upgrades Boost Outlook
Analysts at Citi upgraded AMD to Buy and raised the price target to $575, while analysts at BofA lifted their price target to $560, both citing strong server CPU growth driven by AI initiatives.
