Business

AMD declares $8 billion inventory buyback program


Shares of Superior Micro Gadgets Inc. inched larger in after-hours buying and selling Thursday after the chip firm introduced a brand new $8 billion buyback authorization.

The brand new repurchase authorization is along with a prior $4 billion program announced in May. AMD
AMD,
+6.24%

has purchased again about $3 billion in inventory by that earlier program, it mentioned in a launch Thursday.

“We are pleased to expand our share repurchase program based on the strength of our balance sheet and expectations for future free-cash-flow generation,” Chief Govt Lisa Su mentioned in a launch. “With our strong financial performance, we are able to increase investments to drive long-term growth while returning additional value to our shareholders.”

The corporate plans to fund the repurchases with money generated by its operations. AMD mentioned that this system doesn’t have a termination date and the corporate isn’t obligated to purchase again any inventory by it.

“Although we had expected AMD to actively work toward reducing the dilution from the Xilinx acquisition, we view this as an incremental positive,” Wells Fargo analyst Aaron Rakers wrote in a notice to purchasers following AMD”s announcement.

Bernstein analyst Stacy Rasgon, who turned bullish on AMD share earlier within the week, highlighted the prospect of incremental buybacks as one thing that “could conceivably also be a contributor to accretion” in his Tuesday notice to purchasers.

AMD shares had been up lower than 1% in after-hours buying and selling Thursday after gaining 6.2% within the common session. The inventory has misplaced 26.1% over the previous three months because the S&P 500
SPX,
+1.50%

has declined 8.8%.



Source link