Key Highlights
- Advanced Micro Devices is acquiring $150 million in Nutanix (NTNX) shares at a fixed price of $36.26.
- An additional $100 million will fund collaborative engineering projects and market initiatives.
- Both firms plan to develop an open, comprehensive AI infrastructure solution targeting agentic AI workloads.
- NTNX shares spiked more than 20% during premarket hours before closing up 3.38% for the session.
- Market analysts believe this collaboration strengthens Nutanix’s position in AI and increases acquisition potential.
Shares of Nutanix (NTNX) experienced a notable increase Thursday following the unveiling of a significant strategic alliance with Advanced Micro Devices (AMD). The comprehensive agreement combines direct equity participation with collaborative development funding, totaling a quarter-billion dollars.
The chip manufacturer committed to acquiring $150 million in NTNX shares at a predetermined price of $36.26 per share. This fixed-price acquisition represents a strategic investment rather than an open-market transaction, signaling AMD’s strong confidence in Nutanix’s future.
Beyond the equity stake, AMD pledged an additional $100 million to support collaborative engineering initiatives and combined marketing strategies. The partnership aims to create what the companies characterize as an “open, full-stack AI infrastructure platform” optimized for agentic AI deployments.
NTNX shares skyrocketed over 20% during early premarket activity Thursday morning. However, enthusiasm moderated by the opening bell, with gains settling around 3.8% before finishing the session up 3.38%.
Trading activity showed significant elevation. The stock recorded over 5.4 million shares traded, substantially exceeding its three-month average daily volume of approximately 4.32 million shares.
Despite Thursday’s positive movement, NTNX remains down 22.52% for the current year and has declined 49.78% across the trailing twelve months. While the day’s advance didn’t reverse these losses, it provided encouragement for shareholders.
The partnership announcement came on the heels of Nutanix’s fiscal Q4 earnings release Wednesday evening, which exceeded analyst expectations for both earnings per share and revenue. This strong financial performance provided additional momentum for the AMD partnership news.
Street Perspectives
KeyBanc analyst Brandon Nispel reaffirmed his Overweight rating on NTNX while maintaining a $65 price objective. He stated he “would be buying Nutanix as AMD investment likely sparks renewed enthusiasm” and highlighted the company’s upcoming .NEXT conference in April as a meaningful catalyst opportunity.
RBC Capital Markets analyst Matthew Hedberg commented that the AMD collaboration “likely increases Nutanix’s AI relevance” and elevates the firm’s attractiveness from a merger and acquisition standpoint. He acknowledged that supply-chain challenges are currently extending delivery timelines for certain clients.
AMD’s Action-Packed Week
This Nutanix deal represents AMD’s second major announcement this week. The chipmaker had just revealed a strategic long-term agreement with Meta Platforms earlier in the week, propelling 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 declined approximately 2% Thursday, surrendering a portion of Tuesday’s advances.
Nutanix President and CCO Tarkan Maner stated the collaboration demonstrates “a shared vision for scalable, production-ready AI infrastructure,” emphasizing inference capabilities and agentic applications deployed across hybrid computing environments.
In related news, Avalon GloboCare (ALBT) also posted significant gains Thursday after gaining admission to the AMD AI Developer Program, illustrating widespread market enthusiasm for AMD-affiliated collaborations.
As trading concluded Thursday, NTNX finished up 3.38%, with KeyBanc’s $65 price target indicating considerable upside potential from current trading levels.
