Advanced Micro Devices (AMD) announced a fresh $6 billion share buyback program on Wednesday, pushing the AMD stock price up by 6% in a single day. The move signals strong confidence in the company’s long-term growth and financial stability.
With this new authorization, AMD’s total share repurchase capacity now stands at $10 billion, combining the new $6 billion with a previously approved $4 billion plan.
CEO Lisa Su Backs Strategic Direction
AMD CEO Lisa Su said the expanded buyback plan shows the board’s confidence in AMD’s strategic focus, growth outlook, and consistent cash generation. The move comes as AMD continues to solidify its position in the semiconductor and AI space.
Strong Q1 Performance Adds to Momentum
The buyback announcement followed the company’s first-quarter earnings report, where AMD posted 96 cents in earnings per share on $7.44 billion in revenue. These numbers exceeded analyst expectations, further boosting investor sentiment.
AI Deal with Saudi Arabia Strengthens Future Pipeline
Earlier this week, AMD revealed a potential $10 billion partnership with Saudi AI startup Humain, supplying both graphics and central processors for AI infrastructure. CEO Lisa Su was in Saudi Arabia to personally announce the collaboration.
Analyst Confidence Growing
Following the buyback and AI deal announcements, Bank of America analyst Vivek Arya raised his price target for AMD stock to $130, reflecting growing confidence in the company’s AI potential and strategic execution.