Lisa Su, president and CEO of AMD, talks about the AMD EPYC processor during a keynote address at the 2019 CES in Las Vegas, Nevada, U.S., January 9, 2019.
Steve Marcus | Reuters
Advanced Micro Devices said Wednesday that its board of directors approved $6 billion in share buybacks. The stock climbed 6%.
The authorization is in addition to $4 billion in existing approved share repurchases, the company said.
“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, the most important artificial intelligence chip company aside from Nvidia, reported 96 cents in adjusted earnings per share on $7.44 billion in revenue for its fiscal first quarter.
AMD announced a deal potentially worth $10 billion in investment on Tuesday to support an AI company called Humain in Saudi Arabia with chips. Su was in Saudi Arabia this week to announce the deal.
AMD stock year to date
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. Bank of America analyst Vivek Arya added $10 to his price target for AMD, bringing it to $130 per share, on the news.
Correction: AMD reported 96 cents in adjusted earnings per share for its fiscal first quarter. An earlier version mischaracterized the figure.
