By Sam Boughedda
Investing.com -- Advanced Micro Devices Inc (NASDAQ:AMD) said Thursday evening that its board of directors approved a new $8 billion share repurchase program.
AMD shares rose 3.84% Friday on the back of the news. They closed the week out at just above the $121 mark.
The new authorization is in addition to the $4 billion share repurchase program announced in May 2021. Under the previously announced program, AMD company has repurchased approximately $3 billion of shares of common stock.
The company said the new program — which has no termination date — is designed to return value to shareholders by offsetting dilution from stock issuances and reducing share count over time.
AMD will fund repurchases through cash generated from operations.
“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,” said AMD Chair and CEO Dr. Lisa Su.
“With our strong financial performance, we are able to increase investments to drive long-term growth while returning additional value to our shareholders.”