AMD announces new $8 billion share repurchase program
The new share repurchase program is designed to return higher investment value to shareholders by offsetting dilution from share issuance and the reduction in the number of outstanding shares over time. AMD is expected to fund the buyback through cash from operations, and the timing and amount of the share buyback will depend on market conditions. AMD’s repurchase program has no expiration date, may be suspended or terminated at any time, and has no obligation to purchase any number of common shares.
AMD’s $4 billion stock repurchase program last year was AMD’s first stock repurchase since 2001. This year’s correction in its share price, coupled with the good momentum of future revenue and development, may be an important factor prompting AMD to launch a new share repurchase program. This plan reflects AMD’s confidence in its own business and the successful execution of its multi-year growth strategy, good performance, and growing cash reserves, providing a strong guarantee for the execution of the share repurchase plan. Generally, repurchasing shares can stabilize the stock price, adjust the shareholding structure, and improve the efficiency of capital use. This largely reflects AMD’s management’s confidence in the future and may seek greater development in the next stage. In the long run, the likelihood of AMD stock continuing to rise is also higher.
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