Advanced Micro Devices (AMD) has officially agreed to purchase server builder ZT Systems in a cash and stock deal valued at $4.9 billion. The Futurum Group chief market strategist Cory Johnson joins Market Domination Overtime to discuss the implications of this acquisition for AMD's future.

Johnson notes that this deal positions AMD as "a more complete offering" among its competitors, particularly Nvidia (NVDA). He points out that Nvidia's systems are "complete," with the company managing operations well beyond just chip sales. The ZT acquisition "gives AMD something closer" to achieving this level of control, though Johnson acknowledges there's still a considerable gap to close.

A key benefit of the acquisition, according to Johnson, is the influx of engineering talent. This will give AMD an edge in designing complete systems. "This looks to be like a really great deal for AMD," Johnson tells Yahoo Finance. He emphasizes AMD's position as "the number two player in this space," noting that they are "trying to catch up to what Nvidia's been doing."

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This post was written by Angel Smith