AMD Announces $6 Billion Share Buyback and $10 Billion AI Partnership with Saudi Arabia's Humain

AMD announces $6 billion buyback; shares climb 8%

"Our expanded share repurchase program reflects the Board's confidence in AMD's strategic direction, growth prospects, and ability to consistently generate strong free cash flow," AMD CEO Lisa Su said in a statement. AMD reported 96 cents in earnings per share on $7.44 billion in revenue in its fiscal first quarter. It's also the most important AI chip company aside from Nvidia. While AMD's AI accelerators only have a small portion of the AI chip market at the moment, the company announced a deal potentially worth $10 billion in investment on Tuesday to support an AI company called Humain in Saudi Arabia. Su was in Saudi Arabia this week to announce the deal. AMD said that it would provide graphics processors for AI as well as central processors needed to build AI servers to Humain, which is also buying Nvidia processors.

AMD price jumps on $6 billion stock buyback plan: What that means and why it matters

The $6 billion stock buyback authorization comes in addition to a $4 billion existing buyback, for a total of $10 billion in share repurchases, CNBC reported. The news comes after AMD announced a multi-year $10 billion AI partnership with Saudi Arabia's Humain, a subsidiary of Saudi Arabia's Public Investment Fund, the country's sovereign wealth fund, focused on developing advanced AI infrastructure and technology, in order to diversify the nation's economy beyond just oil. Nvidia announced a similar, but separate, multi-year deal. "At AMD, we have a bold vision to enable the future of AI everywhere - bringing open, high-performance computing to every developer, AI start-up and enterprise around the world," AMD's CEO Lisa Su told Fast Company in a statement. "Our investment with HUMAIN is a significant milestone in advancing global AI infrastructure. Together, we are building a globally significant AI platform that delivers performance, openness and reach at unp recedented levels."

AMD share buyback: Chip major Advanced Micro Devices offers $6 billion program

In Humain's deal with AMD, the agreement includes a plan to invest up to $10 billion to deploy 500 megawatts of AI hardware infrastructure over five years.Chip major Advanced Micro Devices on Wednesday said its board has approved a new $6 billion share buyback program, boosting its total repurchase authority to about $10 billion, as per a report. Chip designer Advanced Micro Devices also announced a deal with Humain, saying it has formed a $10 billion collaboration. Trump began his Gulf tour on Tuesday, kicking it off with the signing of a strategic economic agreement with Saudi Arabia as the oil power rolled out the red carpet. Trump's Middle East visit aims to drum up trillions of dollars in investments. The White House said Saudi Arabian firm DataVolt will invest $20 billion in AI data centers and energy infrastructure in the United States. Alphabet's Google, DataVolt, Oracle Corp, Salesforce Inc, Advanced Micro Devices and Uber will invest $80 billion in cutting-edge transformative technologies in both countries, the White House said, without giving details. In Humain's deal with AMD, the agreement includes a plan to invest up to $10 billion to deploy 500 megawatts of AI hardware infrastructure over five years. "Together, we are building a globally significant AI platform that delivers performance, openness and reach at unprecedented levels," AMD CEO Lisa Su said in a statement. With some capacity set to come online in 2026, Humain will oversee the delivery of the data-crunching power to potential customers, while AMD will provide various AI chips and software. Chaired by bin Salman, Saudi Arabia's de facto leader, Humain will operate under the Public Investment Fund and will offer AI services and products, including data centres, AI infrastructure, cloud capabilities and advanced AI models. "In building an AI company, you need the foundation and the infrastructure," Humain CEO Tareq Amin said on stage from Riyadh on Tuesday. "It's a really, really big initiative for the kingdom." Q1. What is AMD? A1. AMD is Chip major Advanced Micro Devices. Q2. What does Humain's deal with AMD state? A2. In Humain's deal with AMD, the agreement includes a plan to invest up to $10 billion to deploy 500 megawatts of AI hardware infrastructure over five years.

AMD Increases Its Share Buyback Authorization By $6 Billion After Buying Back $749 Million Worth Of Shares Last Quarter

This is not investment advice. The author has no position in any of the stocks mentioned. Wccftech.com has a disclosure and ethics policy. AMD is on a roll these days, especially as the risks surrounding the US-China trade war 2.0 have largely abated and the AI-driven CapEx among hyperscalers shows no sign of slowing down. As an illustration of AMD's newfound confidence, consider the fact that the company has now increased its share buyback authorization by $6 billion. When coupled with the ~$4 billion in existing authorizations (as of the 29th of March 2025), the company's total outstanding buyback authorization now equals ~$10 billion, which is sufficient to acquire over 84 million shares at the current share price. After buying back less than $500 million worth of its shares over the past few quarters, AMD bought $749 million worth of its shares in the last quarter. What's more, the company's expanded buyback authorization bodes well for a more aggressive buyback activity in the ongoing quarter and beyond. Interestingly, this development comes as HUMAIN, the AI-focused subsidiary of Saudi Arabia's Public Investment Fund (PIF), has now inked an agreement with AMD to create a $10 billion fund to "deploy 500 megawatts of AI compute capacity over the next five years." Under the terms of this deal, "HUMAIN will oversee end-to-end delivery, including hyperscale data center, sustainable power systems, and global fiber interconnects, and AMD will provide the full spectrum of the AMD AI compute portfolio and the AMD ROCm™ open software ecosystem." AMD and HUMAIN plan to activate their first "multi-exaflop capacity" data center in Saudi Arabia by early 2026. Meanwhile, as stated earlier, AI hyperscalers appear to be in no mood to slow down their AI-related spending. As per a tabulation by Wolfe Research, the AI hyperscalers are on course to increase their 2025 CapEx by 35 percent over 2024 levels. This, of course, bodes well for NVIDIA, AMD, and TSMC. Finally, we note that AMD managed to deliver solid results recently for its Q1 2025, posting a trifecta of beats by exceeding the consensus expectation of analysts on its top-line and bottom-line metrics, coupled with a more upbeat guidance.

Why Advanced Micro Devices Stock Is Skyrocketing This Week -- Has the Nvidia Rival's Day Finally Come? | The Motley Fool

The chipmaker announced a significant expansion of its share buyback program this week and revealed a massive deal with a Saudi Arabian artificial intelligence (AI) company. AMD's board of directors approved $6 billion in additional share buybacks, supplementing the company's existing $4 billion repurchase authorization. The expanded program signals leadership's confidence in AMD's direction and financial health amid the ongoing AI boom. "Our expanded share repurchase program reflects the Board's confidence in AMD's strategic direction, growth prospects, and ability to consistently generate strong free cash flow," CEO Lisa Su said in a statement. On Tuesday, a day before the buyback program was announced, AMD revealed an investment deal potentially worth $10 billion with Humain, a Saudi Arabian AI company. Su visited Saudi Arabia this week to finalize the agreement, which will see AMD provide GPUs integral to Humain's AI applications and the CPUs also needed to run the GPU-laden AI servers. While Nvidia remains the dominant AI chipmaker, the new deal with Humain shows AMD is capable of landing major contracts. It has been in a race to develop GPUs that can compete with Nvidia's powerful offerings, and while it can't match its rival's latest and most advanced chips, it is hoping to capture the still significant market for a more affordable option. While I don't think AMD will be rivaling Nvidia for the top spot anytime soon, this week's announcements show the company is capable of making the kinds of deals it needs to drive significant growth, and its stock is currently priced better than its rival's. With a PEG ratio -- a valuation metric that shows how fast a company is growing -- of just 0.58, I think AMD is a good pick.

6 Billion Reasons To Buy This Artificial Intelligence (AI) Semiconductor Stock Hand Over Fist (Hint: It's Not Nvidia) | The Motley Fool

Advanced Micro Devices just increased its share buyback program by $6 billion. When it comes to the semiconductor industry, chances are the top name that comes to mind is Nvidia. For the last two years, investors have been consistently reminded of just how dominant Nvidia's presence is in the world of high-performance chipsets, known as graphics processing units (GPUs). While Advanced Micro Devices (AMD -2.12%) has started to build respectable momentum in the GPU world, the company largely remains in Nvidia's shadow. Unsurprisingly, AMD stock hasn't experienced anywhere near the same level of enthusiasm compared to Nvidia during the artificial intelligence (AI) revolution. That might change sooner rather than later, however. Let's explore an important announcement investors may have missed from AMD, and assess why now could be a great opportunity to buy the stock. On May 14, AMD announced that its board of directors approved a $6 billion share repurchase program. This is in addition to AMD's existing $4 billion buyback authorization, bringing the total amount to $10 billion. Over the last year, AMD stock has fallen roughly 30%, and in that time, you can see the company has been ramping up its buyback activity. I'll explain why these dynamics are important. AMD's financial profile can be hard to decipher at first glance. During the first quarter, AMD generated $7.4 billion in revenue -- up 36% year over year. While that looks solid, there's more than meets the eye here. AMD has been experiencing deceleration across its gaming and embedded segments for quite a while now, and Q1 was no exception. Nevertheless, growth from the company's data center and client segments contributed enough to make up for the other business units. The data center business currently makes up about half of AMD's total revenue while boasting a higher operating margin than the client and gaming segment. While these trends are encouraging, AMD's share price action suggests that investors are either uninspired or have their doubts over AMD's ability to compete with Nvidia. While Nvidia had a first-mover advantage when it comes to data center GPUs, AMD's pace of innovation should not be glossed over. Over the last year, AMD has managed to attract a number of existing Nvidia customers such as Oracle, Microsoft, and Meta Platforms -- each of whom have become adopters of AMD's MI300 accelerators. I think AMD's ongoing buybacks and the new $6 billion repurchase program signal that management sees investors aren't giving the company much credit for its AI chip business. At the same time, this segment of AMD's business is still in its early stages and has yet to scale. For this reason, management sees AMD shares as undervalued -- hence, the company has been buying back stock. While AMD's forward price-to-earnings (P/E) multiple may not appear cheap, the downward trend signals clear valuation compression that's hard to overlook. The timing of the new repurchase authorization is key. AMD is scheduled to launch a line of new GPU architectures later this year. The company's decision to increase its buybacks now could also signal that management is confident in the long-run demand prospects of this new launch, making the stock a good value at current levels. As successor chip architectures continue to be released and AMD attracts more customers, the data center business should extend its lead as the biggest contributor of sales and profits for the company. AMD stock is down nearly 50% from its all-time high, and investors with a long-run time horizon should scoop up shares, while they still trade at this reasonable price point. Management appears to have high conviction in the company's growth prospects.

Why AMD Stock Popped Wednesday Morning | The Motley Fool

Things are looking up for the artificial intelligence (AI) and semiconductor specialist. Shares of Advanced Micro Devices (AMD 5.69%), commonly referred to as AMD, charged sharply higher on Wednesday, gaining as much as 8.9%. As of 11:34 a.m. ET, the stock was still up 4.9%. There were multiple positive catalysts that fueled the artificial intelligence (AI) specialist's rally, including beneficial regulatory changes, rising Wall Street sentiment, and plans for a robust share buyback. The day began on a positive note, as the U.S. Department of Commerce announced that it was rescinding the "AI Diffusion Rule." The policy framework, developed during the Biden administration, limited the sale of the most advanced AI chips to companies in foreign countries as a way to limit the development of AI by U.S. adversaries. The regulations were generally reviled by chipmakers, as they felt the rules were too restrictive. Analysts were quick to see the positive side of these changes. Analysts at BofA raised their price target on AMD to $130 up from $120, while maintaining a buy rating on the stock. This represents potential upside of 17% compared to Tuesday's closing price. The easing of these regulations will benefit AMD by boosting sales, according to the analysts. The news comes on the heels of the announcement that AMD and Nvidia are partnering with Saudi Arabian company Humain to build a 500-megawatt data center in the country. Finally, AMD announced a new $6 billion share repurchase authorization, bringing its total allowance to $10 billion. "Our expanded share repurchase program reflects the Board's confidence in AMD's strategic direction, growth prospects, and ability to consistently generate strong free cash flow," said AMD Chair and CEO Lisa Su. Despite the growing AI opportunity, AMD is priced at 29 times next year's sales, offering an attractive way to benefit from the AI revolution.