AMD’s AI Deal and Buyback Spark Bullish Stock Surge
Advanced Micro Devices’ NASDAQ: AMD long-awaited AI-powered stock price rally is here. The stock is rocketing higher after a string of good news, including reduced trade tensions with China, a new deal with Saudi Arabia’s HUMAIN, and a new $6 billion share buyback authorization. The authorization, a sign of the board’s confidence in future free cash flow, is worth an additional $6 billion on top of the $4 billion left under the existing.
The total $10 billion in potential share repurchases is worth about 5.5% of the market cap in mid-May and a potentially strong tailwind. It is potentially strong because repurchase activity in 2024 failed to reduce the count, stock-based compensation awards…
