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Investing.com -- Shares of AMD (NASDAQ: NASDAQ:AMD) climbed 6.5% in pre-market trading after the company announced a substantial expansion of its share repurchase program. The semiconductor firm revealed a new $6 billion authorization for stock buybacks, which supplements the approximately $4 billion remaining from its previous repurchase initiative as of March 29, 2025. This move escalates AMD’s total current buyback capacity to around $10 billion.
The announcement was made early today, with AMD’s board expressing confidence in the company’s strategic direction and growth potential. According to AMD Chair and CEO Dr. Lisa Su, the decision to augment the repurchase program is a testament to the company’s ability to consistently produce strong free cash flow. Dr. Su emphasized AMD’s commitment to disciplined capital allocation and delivering robust returns to shareholders. The plan involves investing in AMD’s leadership product portfolio to stimulate growth while simultaneously returning capital to shareholders.
The specifics of the buyback program indicate that repurchases will be made based on market conditions and may occur through open market transactions or private deals. Importantly, the program does not have a set termination date and may be paused or terminated at any time. Additionally, it does not compel AMD to acquire any specific quantity of common stock.
This strategic move by AMD is aimed at enhancing shareholder value by reducing the number of shares outstanding, potentially increasing earnings per share and the stock’s market value. It also signals to the market that AMD’s leadership believes the stock is undervalued and that the company is in a strong financial position.