AMD announces $4 billion stock repurchase program
If you buy AMD stocks in the previous years, that is, from 2015 to 2016, you can make a lot of money in the past few years. You know, AMD’s stock price was less than $2 when it was the lowest, and it was about to enter the ranks of penny stocks. Although competitor Nvidia has performed well in the US stock market in the past few years, AMD is one of the very few stocks with better performance, and it can even be said to be one of the best stocks in the US stock market in the past few years. Even though the stock price has declined since the beginning of this year, most people are still optimistic about AMD’s development in the next few years.
According to TechPowerup reports, AMD today announced that its board of directors has approved a new stock repurchase program. According to the plan, AMD will repurchase up to $4 billion of outstanding common stock. AMD expects to fund the repurchase through cash obtained from operations. Due to AMD’s recent strong revenue, it has substantially increased its cash reserves.
“Today’s announcement reflects our confidence in AMD’s business and the successful execution of our multi-year growth strategy,” said Dr. Lisa Su, AMD president, and CEO. “Our strong financial results and growing cash generation enable us to invest in the business and begin returning capital to our shareholders.”
In view of the current good performance and growing cash reserves, AMD has provided a strong guarantee for this plan. AMD aims to return the value of the investment to shareholders, offset the dilution caused by the issuance of additional shares, and repurchase shares on the open market. AMD’s repurchase program has no expiration date and can be suspended or terminated at any time.
Generally, repurchasing stocks can stabilize the stock price, adjust the shareholding structure, and improve the efficiency of capital use. This largely reflects the confidence of AMD management in the future and may seek greater development in the next stage. In the long run, AMD’s stock price is more likely to continue to rise.
