AMD Announces $6 Billion Buyback; Shares Climb 6%
- Sara Montes de Oca
- May 14
- 1 min read
AMD announced on Wednesday that its board of directors has approved $6 billion in share buybacks, causing the stock to rise by 6%. This new repurchase program builds upon an existing $4 billion buyback authorization.
“Our expanded share repurchase program reflects the Board’s confidence in AMD’s strategic direction, growth prospects, and ability to consistently generate strong free cash flow,” said AMD CEO Lisa Su in a statement.
In addition to the buyback news, AMD reported its fiscal first-quarter earnings, posting 96 cents in adjusted earnings per share on $7.44 billion in revenue. AMD is considered one of the leading artificial intelligence chip companies, alongside Nvidia.
AMD also announced a major deal on Tuesday, potentially worth $10 billion, to provide chip support to an AI company called Humain in Saudi Arabia.
AMD is set to supply graphics processors and central processors needed for AI servers, while Humain will also be purchasing Nvidia chips. Following the announcement, Bank of America analyst Vivek Arya raised his price target for AMD by $10, setting it at $130 per share.
