AMD Ups Stock Buyback Plan by $6 Billion Amid Market Movements

Published 6 hours agoAMD

AMD Ups Stock Buyback Plan by $6 Billion Amid Market Movements

Advanced Micro Devices (AMD) has announced a new $6 billion stock buyback plan, raising its total share repurchase authority to approximately $10 billion. This move comes as AMD aims to assert its competitive stance in the semiconductor industry. Reuters reports that this decision boosted AMD's share prices by 6.4% shortly after the announcement, although the stock has dipped over 6% since the start of the year, lagging behind the broader semiconductor market.

Despite the excitement surrounding the buyback, challenges persist for AMD. The company reported a drop in free cash flow over the first quarter of 2025 by more than 33%, falling to $727 million. Additionally, AMD's financial statements reveal that its liabilities have surpassed its cash holdings. These financial maneuvers align with broader industry trends, as rival firms like Broadcom and Qualcomm have also launched large buyback initiatives valued at $10 billion and $15 billion respectively.

Lisa Su, AMD's CEO, emphasized the strategic rationale behind the buyback plan, highlighting the Board's confidence in the company's growth potential. This initiative follows a substantial $10 billion collaboration with Humain focused on AI, which places AMD among tech giants capitalizing on opportunities in the Middle East. Su's remarks reflect the company's focus on fostering long-term shareholder value and enhancing its market position.

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