AMD Deepens AI Ecosystem With Enosemi Acquisition

Advanced Micro Devices, Inc. AMD announced on Wednesday its acquisition of Enosemi, a move aimed at accelerating co-packaged optics innovation for AI systems.

The financial terms of the deal remain undisclosed.

Enosemi, previously an external development partner in photonics, will now join AMD to scale the development and support of photonics and co-packaged optics solutions for next-generation AI systems.

Also Read: AMD Could See EPS Upside By 2027 Despite Nvidia’s Over 80% Market Share: Analyst

Enosemi, based in Silicon Valley, has a proven track record of building and shipping photonic integrated circuits in volume, making it an ideal fit for AMD as it pushes deeper into high-performance interconnect innovation.

AMD has been building a portfolio to address the rapidly evolving needs of AI, from foundational silicon to systems-level integration. That journey has included integrating Xilinx’s AI Engines and adaptive SoC technologies, adding advanced data movement and networking capabilities through Pensando, building a software team with the additions of Silo AI and Mipsology, and scaling complete rack-level system design with the latest acquisition of ZT Systems.

AMD held $6.06 billion in cash and equivalents as of March 29, 2025.

AMD reported first-quarter revenue of $7.44 billion, up 36%, beating analyst estimates of $7.13 billion. The chipmaker reported first-quarter adjusted earnings of 96 cents per share, beating analyst estimates of 94 cents per share. Gross margin came in at 54% in the quarter. 

AMD expects second-quarter revenue of approximately $7.4 billion, plus or minus $300 million versus analyst consensus estimate of $7.24 billion. AMD anticipates a second-quarter adjusted gross margin of 43%, which includes an approximate $800 million impact in charges related to inventory due to new export controls.

Price Action: AMD stock is trading higher by 3.38% to $116.66 premarket at last check Thursday.

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