AMD Soars 6.46% on $60B Buyback, AI Partnership

On May 14, 2025, Advanced Micro Devices (AMD) experienced a significant pre-market surge, rising by 6.46%.

AMD's recent stock performance has been driven by several key developments. The company announced a $60 billion stock buyback program, which is expected to boost shareholder value. Additionally, AMD has entered into a strategic partnership with Saudi Arabia's Humain, a leading AI company, to advance global AI initiatives. This collaboration is part of AMD's broader strategy to leverage AI and high-performance computing technologies.

AMD's Q1 2025 earnings report exceeded Wall Street expectations, with revenue reaching $7.4 billion, a 35.9% year-over-year increase. The company's adjusted EPS of $0.96 also surpassed analyst forecasts, driven by strong performance in the data center division, which saw a 57% year-over-year revenue increase. Despite a decline in gaming revenue, the overall gross margin expanded to 50%, reflecting the company's robust product mix and operational efficiency.

Looking ahead, AMD remains optimistic about its Q2 performance, projecting revenue of $7.4 billion, which exceeds analyst expectations. The company's strong cash flow generation, with an 80.2% increase in cash flow from operations, further supports its financial health and growth prospects. Analysts have responded positively to AMD's performance, with many upgrading their ratings and price targets, reflecting confidence in the company's growth trajectory.