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8 hours ago
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Faizan Farooque
Thu, May 15, 2025, 5:19 AM 1 min read
In This Article:
Advanced Micro Devices (AMD, Financials) announced a $6 cardinal banal buyback connected Wednesday, joining peers successful returning superior to shareholders arsenic maturation successful AI-related semiconductor request shows signs of cooling.
AMD's latest buyback brings its full repurchase authorization to astir $10 billion. The announcement follows a $10 cardinal AI collaboration woody with Middle Eastern steadfast Humain, revealed conscionable 1 time earlier.
Shares roseate arsenic overmuch arsenic 6.4% connected the news. However, the banal remains down implicit 6% successful 2025, underperforming the Philadelphia Semiconductor Index, which has slipped little than 1% twelvemonth to date.
Free currency travel dropped much than 33% successful the 4th ended March to $727 million. AMD reported $6.05 cardinal successful currency and equivalents and $7.70 cardinal successful existent liabilities arsenic of March 29.
Despite being positioned arsenic a cardinal challenger to Nvidia's AI dominance, AMD is facing unit from customized processor makers and Nvidia's entrenched marketplace position. AMD's shares declined 18% successful 2024 portion Nvidia surged implicit 170%.
Competitors are besides returning superior aggressively. Broadcom (AVGO, Financials) announced a $10 cardinal buyback successful April, and Qualcomm (QCOM, Financials) launched a $15 cardinal repurchase successful November.
CEO Lisa Su said the determination reflects assurance successful AMD's strategical direction, maturation prospects, and quality to consistently make beardown escaped currency flow.
Investors volition beryllium watching to spot whether AMD's caller strategical alliances assistance adjacent the competitory spread successful the AI spot sector.
This nonfiction archetypal appeared connected GuruFocus.
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