American semiconductor corporation AMD, considered a rival to the artificial intelligence (AI) powerhouse NVIDIA, announced a plan to buy back $6 billion (8.4 trillion won) in shares on the 14th (local time).
On this day, AMD received approval from its board of directors for this share buyback plan, stating that it is an expansion from the previous buyback amount of $4 billion and is an addition to the existing share buyback program.
Lisa Su, chief executive officer (CEO), noted in a statement that "this expansion of the share buyback reflects the board's confidence in AMD's strategic direction, growth potential, and its ability to continuously generate strong cash flow."
AMD recorded revenues of $7.44 billion and earnings per share of $0.94 in the first quarter, surpassing market expectations.
Earlier on the 13th, AMD agreed to supply AI chips to Human, an AI corporation led by Saudi Crown Prince Mohammed bin Salman.
Vivek Arya, an analyst at Bank of America, raised AMD's target stock price by $10 to $130.
On this day, AMD's stock price rose by more than 5% in the New York stock market.
As of 12:18 p.m. Eastern time (9:18 a.m. Pacific), AMD's stock was trading at $118.38, up 5.27% from the previous day.
NVIDIA, which has contracted to supply 18,000 units of its latest AI chips to Human, saw its stock rise by 3.83% to $134.88 at the same time. NVIDIA's stock had previously increased by 5.6%. NVIDIA's market capitalization approached $3.3 trillion, overtaking Apple to rank second in market cap during the trading session.