Yahoo Finance

KEY TAKEAWAYS

• Advanced Micro Devices shares jumped Wednesday, as the chip designer said its board approved a new $6 billion share buyback plan.

• The move will boost AMD's buyback program to $10 billion, the company said.

• The gains also come a day after AMD and rival Nvidia announced partnerships with Saudi Arabian AI startup Humain.
  

Advanced Micro Devices (AMD) shares jumped Wednesday, as the chip designer said its board approved a fresh $6 billion share repurchase plan, boosting its buyback program to $10 billion.

“Our expanded share repurchase program reflects the Board’s confidence in AMD’s strategic direction, growth prospects, and ability to consistently generate strong free cash flow,” AMD CEO Lisa Su said.

The stock was up over 5% in recent trading, extending Tuesday's gains after the company announced a partnership with Saudi Arabian AI startup Humain.

AMD and rival Nvidia (NVDA) on Tuesday said they would supply semiconductors to Saudi Arabian AI startup Humain, as part of initiatives announced as President Donald Trump kicked off a four-day trip to the Middle East. Shares of Nvidia were also higher Wednesday, as several AI stocks gained amid expectations the partnerships could lead to more deals.

As part of AMD's partnership with Humain, the companies said they plan to invest up to $10 billion over the next five years to build out AI computing centers "stretching from the Kingdom of Saudi Arabia to the United States."

With this week's gains, AMD shares are close to recovering their year-to-date losses, but they've still lost roughly one-quarter of their value over the past 12 months.

Read the original article on Investopedia