AMD Adds $6B Buyback, Partners With Humain

Advanced Micro Devices (AMD) has expanded its share repurchase program by $6 billion, increasing its total buyback authorization to about $10 billion. The announcement coincided with a 5% to 8% rise in AMD's stock price, partly driven by a newly established $10 billion AI partnership with Saudi startup Humain, in which rival Nvidia is also involved. CEO Lisa Su emphasized the company's confidence in its growth prospects and capital allocation strategy. Despite these positive signals, AMD's stock has underperformed compared to peers such as Nvidia and Broadcom over the past year, amid heightened competition and volatility in the AI sector. The buyback program has no set end date and will be executed based on market conditions. AMD remains a significant player in the AI chip market but continues to face challenges in maintaining competitiveness.