AMD MEXT Deal Eases AI Memory Costs, Spares Micron Sales

AMD’s June 15 acquisition of MEXT is now viewed as a software efficiency play that expands effective DRAM capacity 2-4x and cuts memory costs nearly in half without displacing hardware suppliers. The move follows AMD’s $350 million TensorWave investment on June 10 and coincides with Rackspace’s multi-year AMD cloud deployment. Shares briefly topped a $900 billion valuation after the announcement, while Q1 revenue rose 38% and Data Center revenue jumped 57%. The company raised Q2 guidance to about $11.2 billion; its stock has climbed 265% over the past year.