Nutanix sells $150M stake to AMD, deepening AI infrastructure partnership
What's the deal? Nutanix has completed the sale of more than 4.1 million shares to AMDDealroom has a profile for this one. Try Dealroom → under a stock purchase agreement, raising roughly $150M in gross proceeds. The deal deepens a partnership between the two companies as Nutanix pushes further into AI infrastructure built on its hybrid cloud platform.
Analysts had projected quarterly earnings of $0.35 per share on $686M in revenue ahead of the capital raise.
Why now? Nutanix is positioning itself at the centre of hybrid and multi-cloud deployments, with AI workloads becoming an increasingly important growth driver. Aligning with AMD — a major player in AI chips — gives Nutanix both capital and engineering support to compete for those workloads.
The company's narrative projects $3.8B in revenue and $526M in earnings by 2029, requiring about 12% annual revenue growth. The AMD partnership could help underpin that trajectory by bolstering Nutanix's subscription-based model, which many investors view as the key engine for future support and maintenance revenue.
What could go wrong? The 4.1 million new shares raise near-term dilution concerns, especially as macro spending worries already weigh on the stock. Some analysts take a more cautious view, projecting revenue of roughly $3.5B and earnings of about $623M by 2028 — below the baseline forecast.
OEM-driven delays and slower-than-expected VMware migrations could also hold Nutanix back. The next earnings release is seen as a key catalyst that may settle some of these debates.
The signal: AMD's move here is notable as a corporate investor taking an equity stake rather than simply signing a commercial partnership, underscoring how chipmakers are increasingly using strategic capital to lock in hybrid cloud platforms for AI workload distribution. For Nutanix, still classified as an early-growth-stage company on Dealroom despite its public listing, the deal suggests its subscription-driven model is attracting infrastructure-level bets — not just customer contracts — as the race to own the AI compute layer intensifies.
Read more: finance.yahoo.com
