AMD Raises Share Buyback Authorization by $6 Billion Following $749 Million in Share Repurchases Last Quarter

This is not investment advice. The author does not hold any positions in the stocks mentioned in this article.

AMD’s Ascendancy Amid Evolving Market Challenges

Advanced Micro Devices (AMD) is witnessing a remarkable transformation, particularly as uncertainties surrounding the US-China trade tensions have significantly lessened. Furthermore, the surge in AI-driven capital expenditures among major cloud service providers, commonly referred to as hyperscalers, continues unabated.

Substantial Share Buyback Authorization Increase

A testament to AMD’s robust position is the recent announcement of a $6 billion share buyback authorization. In conjunction with approximately $4 billion in existing buyback authorizations as of March 29, 2025, the total amount now approaches $10 billion. This substantial fund is poised to facilitate the acquisition of over 84 million shares at the current market price.

AMD's Share Buyback History — AMD’s Share Buyback History

Recent Buyback Activity Insights

Following a modest buyback of less than $500 million in previous quarters, AMD has ramped up its activity, repurchasing $749 million in shares last quarter. This increase in buyback activity is indicative of a more aggressive approach moving forward, bolstered by the expanded buyback authorization.

Strategic Partnership with HUMAIN

In an exciting development, AMD has cemented a partnership with HUMAIN, an AI-centric subsidiary of Saudi Arabia’s Public Investment Fund (PIF).Together, they aim to launch a $10 billion fund intended to establish 500 megawatts of AI computing capacity over the next five years.

This collaboration stipulates that HUMAIN will manage end-to-end solutions, including hyperscale data centers, sustainable energy systems, and global fiber interconnects. Meanwhile, AMD will provide its comprehensive portfolio of AI computing technology and the AMD ROCm™ open-source software ecosystem.

The partnership’s first major initiative involves launching a “multi-exaflop capacity”data center in Saudi Arabia by early 2026, marking significant progress in AMD’s global strategy.

AI Hyperscalers Surge Ahead

As previously mentioned, hyperscalers focused on AI continue to capitalize on their investments. According to research compiled by Wolfe Research, these entities are projected to boost their capital expenditures by 35 percent in 2025 compared to 2024, which bodes well for AMD, NVIDIA, and TSMC.

Positive Earnings Report for Q1 2025

In a final note, AMD recently reported outstanding results for Q1 2025, surpassing analyst expectations across the board in both revenue and earnings. Additionally, the company has provided an optimistic outlook moving forward, adding to the positive trajectory observed in its operations.

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