AMD Surges on Massive $6B Share Repurchase Plan

• AMD (AMD) stock rises: Advanced Micro Devices Inc. shares gained 5% to $118.13, hitting an intraday high of $122.52, driven by a new $6 billion share repurchase program, bringing total repurchase authority to $10 billion.
• Major AI deal in Saudi Arabia: AMD secured a potential $10 billion deal to supply AI graphics and central processors to Humain in Saudi Arabia, prompting Bank of America (BAC) to raise its price target by $10 to $130 per share.
• Strong financial performance: AMD reported fiscal first-quarter earnings of 96 cents per share on $7.44 billion in revenue, with CEO Lisa Su emphasizing disciplined capital allocation and confidence in the company’s AI-driven growth prospects.

The strategic moves by Advanced Micro Devices Inc. (AMD) have bolstered investor confidence, driving its stock up 5% to $118.13 in early Wednesday trading, with an intraday high of $122.52, as the company announced a robust $6 billion share repurchase program. This new authorization, combined with the approximately $4 billion remaining from its existing program as of March 29, 2025, brings AMD’s total current repurchase authority to roughly $10 billion, signaling a strong commitment to enhancing shareholder value. AMD Chair and CEO Dr. Lisa Su emphasized the board’s confidence in the company’s growth trajectory and its ability to generate consistent free cash flow, underpinned by disciplined capital allocation and investments in its leadership product portfolio.

AMD’s prominence in the artificial intelligence sector, second only to Nvidia (NVDA), continues to drive its market momentum. The company reported fiscal first-quarter earnings of $0.96 per share on $7.44 billion in revenue, reflecting its ability to capitalize on the surging demand for AI and high-performance computing solutions. A significant milestone was AMD’s announcement of a deal potentially worth $10 billion to supply graphics and central processors for AI servers to Humain, an AI company in Saudi Arabia, which is also procuring Nvidia processors. This agreement, highlighted during Dr. Su’s visit to Saudi Arabia, underscores AMD’s expanding footprint in the global AI ecosystem and its role in supporting the Kingdom’s ambition to become a technology hub.

The Humain deal prompted Bank of America (BAC) analyst Vivek Arya to raise his price target for AMD by $10 to $130 per share, reflecting optimism about the company’s ability to secure high-value contracts in the AI market. AMD’s processors are critical for building the infrastructure needed to power advanced AI applications, positioning the company as a key player in a sector experiencing exponential growth. The share repurchase program further reinforces AMD’s financial strength, allowing it to return capital to shareholders while continuing to invest in innovation, particularly in graphics and central processing units tailored for AI workloads.

The broader AI chip market remains highly competitive, with AMD navigating challenges such as supply chain dynamics and the need to differentiate its offerings from Nvidia’s dominant portfolio. However, AMD’s strategic partnerships, like the one with Humain, and its focus on expanding production capacity position it to capture a growing share of the AI infrastructure market. Investors should note that while the repurchase program and recent deals signal confidence, the execution of large-scale international contracts and sustained innovation will be critical to maintaining AMD’s upward trajectory. In summary, AMD’s $10 billion repurchase authority, combined with its $10 billion AI deal in Saudi Arabia, highlights its dual focus on shareholder returns and leadership in the AI-driven technology landscape, driving its stock’s strong performance.

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