AMD launches $6 billion share buyback program

SANTA CLARA, Calif. - Advanced Micro Devices, Inc. (NASDAQ: AMD), a leading global semiconductor company with a market capitalization of $182 billion, has announced the approval of a significant $6 billion share repurchase program by its board of directors. This new buyback plan is in addition to the roughly $4 billion remaining from a previous authorization as of March 29, 2025, effectively bringing AMD’s current repurchase capacity to an estimated $10 billion. The announcement comes as the company’s stock has shown strong momentum, posting a 12% return over the past week, according to InvestingPro data.

The announcement was made today and underscores the company’s strong financial position and commitment to returning value to its shareholders. InvestingPro analysis reveals AMD maintains a healthy financial profile with a current ratio of 2.8 and operates with moderate debt levels, as evidenced by a low debt-to-equity ratio of 0.08. Dr. Lisa Su, AMD Chair and CEO, stated that the expanded repurchase program reflects the board’s belief in the company’s strategic direction and potential for growth. She emphasized AMD’s focus on disciplined capital allocation and its dedication to delivering shareholder returns, which is supported by the company’s impressive revenue growth of 21.7% over the last twelve months.

AMD plans to execute the stock repurchases based on prevailing market conditions and will conduct these transactions through open market purchases or privately negotiated deals. The program does not have a fixed expiration date and can be suspended or discontinued at the company’s discretion. Furthermore, there is no obligation for AMD to acquire any specific number of shares.

For over five decades, AMD has been at the forefront of high-performance computing, graphics, and visualization technologies. The company’s products are integral to various sectors, including Fortune 500 companies and leading scientific research institutions.

The press release also contains forward-looking statements regarding AMD’s strategic direction, growth prospects, and ability to generate strong free cash flow, as well as its commitment to disciplined capital allocation and driving shareholder returns. However, these statements are based on current beliefs and expectations and are subject to risks and uncertainties that could cause actual results to differ materially.

Investors are reminded that the information provided is based on a press release statement and that AMD’s plans are subject to change based on a variety of factors, including market conditions and the company’s ongoing evaluation of its business strategies.

In other recent news, Advanced Micro Devices, Inc. (AMD) has reported better-than-expected financial results for the March quarter, with revenues reaching $7.44 billion and earnings per share (EPS) of $0.96, surpassing consensus estimates. The company’s guidance for the June quarter also exceeds expectations, projecting revenues of $7.4 billion and EPS of $0.90. In a strategic move, AMD has partnered with Saudi Arabia’s HUMAIN on a $10 billion AI infrastructure project, aiming to deploy 500 megawatts of AI compute capacity over five years. This collaboration is set to enhance AMD’s position in the AI sector, leveraging its AI compute portfolio and ROCm open software ecosystem.

Furthermore, AMD has launched its EPYC 4005 Series processors, targeting small and medium-sized businesses and IT service providers, offering a balance of performance and efficiency. Analyst firms have also weighed in on AMD’s prospects, with TD Cowen raising its stock price target to $115 and maintaining a Buy rating, citing sustainable gains in PC and server CPU market share. Cantor Fitzgerald continues to maintain an Overweight rating with a $120 price target, noting AMD’s strong performance despite uncertainties in the Client and Data Center CPU markets.

The market share landscape has seen shifts, with ARM gaining ground in the microprocessor unit market, increasing its share to 13.6% for the first quarter of 2025. AMD’s market share, however, decreased slightly to 21.1%, while Intel’s share also declined. These developments highlight AMD’s strategic initiatives and market dynamics as the company navigates challenges and opportunities in the semiconductor industry.

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