AMD Stock Rockets Higher as it Gives Green Light to $10B Share Buyback Plan

Shares in Advanced Micro Devices (AMD) soared 8% in early trading after the semiconductor maker gave the green light to a new $6 billion share buyback program.

On top of the existing plan, it gives the company the authority to repurchase $10 billion.

Growth Prospects

The AMD board said the move reflected its confidence in the strategic direction of the business, its growth prospects and its ability to consistently generate strong free cash flow.

AMD Chair and CEO Dr. Lisa Su said: “We remain committed to disciplined capital allocation and driving strong shareholder returns.”

It cautioned that the timing and total amount of the stock repurchases will depend upon market conditions. It said that it may be suspended or discontinued at any time.

However, as can be seen below it continues a strong recent track record of stock repurchasing.

Hopes Renewed

AMD stock has, like many U.S. tech companies, had a volatile last few months after a strong period of success. Its share price is down 19% over the last six months hit by restrictions on chip exports, the rise of Chinese upstarts like DeepSeek and the uncertainty caused by President Trump’s tariffs.

However, its stock is up 16% over the last five days buoyed by hopes of a U.S. and China trade deal, the slashing of tariff rates between the two nations and new trade commitments off the back of Trump’s trip to the Middle East.

AMD has entered a major partnership with Saudi Arabia’s AI company Humain by announcing a $10 billion investment deal to expand AI infrastructure in the region. Over the next five years, the two companies plan to build and deploy 500 megawatts of AI compute capacity in Saudi Arabia.

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