AMD announces new $8 billion share repurchase program

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AMD announced that its board of directors has approved a new share repurchase program, in addition to a $4 billion share repurchase program launched in May 2021. AMD said it had previously repurchased about $3 billion of outstanding common stock under the plan.

“We are pleased to expand our share repurchase program based on the strength of our balance sheet and expectations for future free cash flow generation,” said AMD Chair and CEO Dr. Lisa Su. “With our strong financial performance, we are able to increase investments to drive long-term growth while returning additional value to our shareholders.”
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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.

Entering the market is risky, and investment needs to be cautious. This article does not involve any investment advice.

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