AMD's feeling flush: plans to spend $4B buying back its own shares

AMD may have money burning a hole in its pockets, as the Ryzen and Radeon maker announces a program to repurchase $4B worth of its own shares.

What that means is AMD is looking to bolster its share price by buying up some of the shares it has issued over the years. The fewer shares in the open market, the less diluted the share pool, the higher the value of each share. Capeesh?

"Today's announcement reflects our confidence in AMD's business and the successful execution of our multi-year growth strategy," Dr. Lisa Su, AMD president and CEO, says. "Our strong financial results and growing cash generation enable us to invest in the business and begin returning capital to our shareholders."

Your next upgrade

Best CPU for gaming: the top chips from Intel and AMD
Best graphics card: your perfect pixel-pusher awaits
Best SSD for gaming: get into the game ahead of the rest

The total value of AMD's outstanding shares, its market cap, is currently a little over $92B. That's subject to change over the years, however—ideally AMD will want that to go up, meaning how many shares AMD can buy back with its $4B will change over time. It's quite a few, anyways.

There's no doubt that AMD is riding high after some of its best years in the company's history. The company's revenue for the first three months of 2021 was $3.45B, an increase of 93% year on year

And Dr. Lisa Su is clearly keen on putting that right back into the biz. Not only with this buyback scheme but also AMD's recent $35B acquisition of Xilinx.

TOPICS

Jacob earned his first byline writing for his own tech blog, before graduating into breaking things professionally at PCGamesN. Now he's managing editor of the hardware team at PC Gamer, and you'll usually find him testing the latest components or building a gaming PC.