Introduction
Advanced Micro Devices (AMD), one of the leading US processor designers, announced on May 14, 2025, that its board has approved a new stock buyback program totaling 6 billion US dollars. This measure complements the existing buyback program, which still amounted to about 4 billion US dollars at the end of March. This increases the total buyback authorization to approximately 10 billion US dollars.
Details of the Buyback Program
- Volume: The new program includes up to 6 billion US dollars.
- Total Volume: Together with the existing program, the authorization amounts to around 10 billion US dollars.
- Timeline: The program has no fixed end date and can be utilized flexibly.
- Justification: According to CEO Lisa Su, the expanded buyback program reflects the board’s confidence in the strategic direction, growth prospects, and AMD’s ability to continuously generate strong free cash flow.
Market Reaction and Significance for Investors
The announcement triggered a significant increase in AMD’s stock price: in pre-market trading, it rose by as much as 8 percent. Analysts view this as a signal of financial strength and confidence in the company’s future.
Context: Industry Trends & Partnerships
In parallel with the buyback announcement, media reported significant partnerships between US technology companies like AMD, Nvidia (NVDA), and Qualcomm (QCOM) with players from Saudi Arabia. Commitments totaling around 600 billion USD for technology investments were made – further evidence of robust global demand for AI chips.
Conclusion
The planned multi-billion dollar stock buyback by AMD is both a strong signal to investors and an expression of financial stability. For shareholders in the German-speaking region, this offers additional security as well as potential for price gains – especially in light of current industry trends such as the boom in AI chips.