AMD (AMD) announced a stock return plan of US$6 billion after obtaining large-scale orders from Saudi Arabia, which inspired stock prices to rise by nearly 5%.
According to reports from foreign media such as CNBC, Reuters, AMD announced that the board of directors has approved a new round of stock repurchase plans of $6 billion, plus the previous round of stock repurchase plans of $4 billion, the overall repurchase size has expanded to $10 billion.
AMD executive director Su Zifeng said that expanding the stock return scale reflects the board's confidence in AMD's strategic direction, growth prospects and ability to generate free cash flow.
AMD recently obtained a large-scale AI chip order from Saudi Arabia. On the 13th, it announced that it had finalized a cooperation agreement with Humain, an AI company supported by Saudi Arabia's own wealth fund, to reach a scale of up to US$10 billion, and will deploy 500 MW of AI hardware construction in the next five years.
AMD is regarded as NVIDIA's strongest rival in the AI chip field, and analysts are optimistic that the company will benefit from the AI recommendation market position of edge computing, as well as the market expansion of central processors (CPUs) and picture processors (GPUs).
AMD shares rose 4.68% on the 14th, closing at $117.72. The stock market has rebounded sharply after the announcement of taxes related to the above-mentioned taxes; it has fallen by about 6% so far this year, representing a 5% rating.
US silver analyst Vivek Arya has revised the AMD target price to $130 in the latest report and the NVIDIA target price to $160, mainly optimistic about the visible response brought by the Saudian contract.
Extended reading: Su Zifeng: AMD's leading product combination can offset tax damage Wealth and willpower are too strong, and Shaguo will become the AI overlord