AMD’s stock buybacks explained: History, balance & outlook
Advanced Micro Devices has been flush with cash from sales of its hardware, which is widely used in the artificial intelligence industry — the latest tech trend. With so much money on hand, the company can undertake many initiatives. In recent years, the company has used some of its earnings ...
Overview
Advanced Micro Devices has been flush with cash from sales of its hardware, which is widely used in the artificial intelligence industry — the latest tech trend. With so much money on hand, the company can undertake many initiatives.
In recent years, the company has used some of its earnings to buy back some of its outstanding stock — a corporate action that the company didn't undertake during its first 50 years in business.
Here’s a closer look at the company's recent stock repurchase programs, the value of the company's treasury stock, how many shares the chipmaker plans to buy back in the future, and how stock buybacks affect AMD shareholders.
How many times has AMD announced stock buybacks?
AMD has introduced three separate stock repurchase plans — all of which were initiated after 2020 — as its cash flow increased.
In May 2021, the company announced a stock repurchase plan of up to $4 billion. By the end of 2021, it had bought back almost $1.8 billion in shares. In the following year, in February 2022, it declared a new $8 billion stock repurchase program, which was in addition to the $4 billion stock buyback plan.
Three years later, in May 2025, AMD announced a $6 billion repurchase program. By March 2025, it had a $4 billion balance remaining from its prior program.
AMD's stock buyback history by year
| Year | Repurchased common stock (in millions of dollars) | Treasury stock beginning of period (in millions of dollars) |
|---|---|---|
2025 | -$1,316 | -$7,079 |
2024 | -$862 | -$6,106 |
2023 | -$985 | -$3,099 |
2022 | -$3,702 | -$2,130 |
2021 | -$1,762 | — |
Source: AMD
How much stock has AMD bought back?
From 2021 to 2025, AMD bought a total of $8.6 billion worth of stock. In the first quarter of 2026, it bought back an additional $221 million in shares.
As of the first quarter of 2026, AMD said its repurchase authority totaled $14 billion, and $9.2 billion remained available for future stock buybacks under the repurchase program. There is no termination date.
Details
Despite the buyback program, AMD said the company isn’t obligated to buy any common stock, and the plan may be suspended or discontinued at any time.
AMD's revenue, income & cash flow by year
| Year | Revenue (in millions of dollars) | Net income (in millions of dollars) | Free cash flow (in millions of dollars) |
|---|---|---|---|
2025 | 34,639 | 4,335 | 5,519 |
2024 | 25,785 | 1,641 | 2,405 |
2023 | 22,680 | 854 | 1,121 |
2022 | 23,601 | 1,320 | 3,150 |
2021 | 16,434 | 3,162 | 3,199 |
2020 | 9,763 | 2,490 | 806 |
2019 | 6,731 | 341 | 276 |
Source: AMD
AMD posted record profit of $4.3 billion on record revenue of $34.6 billion in 2025. With net income at an all-time high, AMD was flush with cash that it could have used to buy back a significant amount of stock. Instead, the company used its cash to reinvest in its ongoing operations and fuel additional growth.
More on stock buybacks and dividends:
- Amazon's stock buybacks explained
- Apple's dividend explained: Yield, history & more
- How much does Home Depot pay in dividends?
Why does AMD repurchase its stock?
AMD says stock repurchases are “designed to return value to AMD stockholders,” and that they also offset dilution from stock issuances. For the most part, AMD buys back stock that it can then reissue as stock awards to employees for meeting company internal performance goals.
In 2025, the company approved almost 275,000 performance-based restricted stock units (PRSUs) and almost 227,000 RSUs and stock options for CEO Lisa Su and four other executives as part of their compensation plans.
How do AMD shareholders benefit from stock repurchases?
By repurchasing stock, AMD effectively increases its earnings per share by reducing the number of outstanding shares in the market. Higher earnings inspire investor confidence, which can, in turn, drive share prices higher, benefiting existing shareholders.
When AMD buys back its own shares in the open market, those shares become part of the tech giant’s treasury stock. AMD can issue stock from its treasury for employee stock options and awards instead of issuing new shares — an action that would dilute existing shareholders' ownership stake in the company.
Related: Amazon's dividends and stock splits: What you need to know
Source
Originally published at www.thestreet.com.
