AMD Soars to New Heights with Stock Buyback and AI Partnership
1min read Advanced Micro Devices, Inc. (AMD) recently experienced a notable upswing, climbing 4.68% on May 14, which marked the continuation of a six-day rally, totaling a 19.37% gain. The stock reached its highest point since January 2025.
The surge was partly attributed to AMD's announcement of a $60 billion stock buyback program, reflecting the board's confidence in the company's strategic direction and growth prospects. CEO Lisa Su highlighted the enhanced program's aim to bolster strong free cash flow generation.
Additionally, AMD disclosed a significant milestone in its strategic endeavors by securing a $100 billion collaboration with Saudi artificial intelligence subsidiary, Humain. This partnership aims to propel advancements in global AI technologies.
In its first-quarter report, AMD reported robust financial results, with net profits multiplying by 4.8 times to $709 million and adjusted earnings per share surpassing market expectations at 96 cents compared to the expected 94 cents. Revenue also saw a gratifying increase of 36% to $7.44 billion, beating the forecast of $7.13 billion.
A key driver behind this growth was the data center segment, which includes AI graphics and central processor sales, generating $3.7 billion in revenue, a 57% year-over-year rise, surpassing expectations.
Looking ahead, AMD projected its second-quarter sales to reach approximately $7.4 billion, with a gross margin of 43%. The forecast includes $8 billion in costs related to U.S. restrictions on exporting certain AI chips.
The future prospects and strategic collaborations illustrate AMD's determination to maintain its position as a formidable player within the AI and semiconductor industry, continuing its trajectory of technological advancement and financial growth.
