AMD Stock Pops On $6 Billion Buyback Plan, US Tariff Ease

Advanced Micro Devices, Inc (NASDAQ:AMD) announced on Wednesday that its board of directors approved a new $6 billion share repurchase program.

The new authorization is in addition to the remaining balance, as of March 29, of approximately $4 billion of its existing share repurchase program, increasing the total current repurchase authority to roughly $10 billion.

The stock is trading higher after the update.

Also Read: AMD Launches EPYC 4005 Chips For Small Business And Cloud

AMD stock is down close to 7% year-to-date. Uncertainty surrounding U.S. tariff policies took a toll on the entire sector.

The company is engaged in intensifying competition with Nvidia Corp (NASDAQ:NVDA) GPUs.

However, semiconductor stocks got a boost this week after Beijing and Washington temporarily agreed to lower tariffs on each other’s products. Bloomberg reported on Wednesday, citing unnamed sources familiar with the matter, that the US also looks to rescind the Biden administration’s artificial intelligence diffusion, which created three broad tiers of access for countries seeking AI chips and would have taken effect May 15. Instead, the US government is drafting its approach and could forge individual deals with countries.

President Trump also announced multi-billion dollar commercial deals from Saudi Arabia with companies, including Amazon.com Inc (NASDAQ:AMZN) and AMD.

AMD held $7.31 billion in cash and equivalents as of March 29, 2025.

Last week, AMD reported first-quarter revenue of $7.44 billion, up 36%, topping analyst estimates of $7.13 billion. The chipmaker reported first-quarter adjusted earnings of 96 cents per share, beating analyst estimates of 94 cents per share.

AMD expects second-quarter revenue of approximately $7.4 billion, plus or minus $300 million. Analysts are currently forecasting second-quarter revenue of $7.24 billion.

Price Action: AMD stock traded higher by 7.92% to $121.15 at Wednesday’s last check.

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