TLDR
- AMD announced a new $6 billion share buyback program, expanding total repurchase authority to approximately $10 billion
- The company will report fiscal Q2 2025 results on August 5, 2025, after market close
- Wall Street expects adjusted EPS of 49 cents and revenue of $7.41 billion for the quarter
- AMD agreed to sell ZT Systems’ manufacturing business to Sanmina for $3 billion
- Stock jumped 1.39% on Wednesday following the earnings announcement
AMD stock climbed Wednesday after the chipmaker revealed key details about its upcoming earnings report and announced a massive share buyback program. The company will report fiscal second quarter 2025 results on August 5 after market close.
The earnings announcement came alongside news of a $6 billion share repurchase program. This expands AMD’s total buyback authority to roughly $10 billion.
Wall Street analysts expect adjusted earnings of 49 cents per share for the quarter. That would represent a 29% drop from the 69 cents reported in the same period last year.
Revenue expectations sit at $7.41 billion, which would mark a 27.1% increase year-over-year. AMD has beaten Wall Street’s EPS estimates in six of the last eight quarters.
The company has also beaten revenue estimates in seven of the past eight quarters. This track record gives investors confidence ahead of the August report.
New Product Launches Drive Growth
AMD continues expanding its product lineup with several new releases. The company launched EPYC 4005 Series processors for entry-level enterprise customers.
The 5th Gen EPYC Embedded processors target networking and storage markets. These chips offer long product lifecycles and high efficiency for industrial applications.
The Radeon RX 9000 Series graphics cards feature next-generation RDNA 4 architecture. AMD also introduced Versal RF Series Adaptive SoCs for high-compute applications.
These products position AMD to capture more market share in data centers and gaming. The company’s AI-focused hardware continues gaining traction with enterprise customers.
Strategic Business Moves
AMD struck a deal to sell ZT Systems’ manufacturing business to Sanmina for $3 billion. The transaction includes cash, stock, and up to $450 million in contingent payments.
AMD will keep ZT Systems’ design and customer teams while Sanmina becomes a preferred manufacturing partner. This deal allows AMD to focus on chip design while maintaining production capabilities.
The company also formed a strategic alliance with HCLTech to accelerate digital transformation. The partnership focuses on AI, digital, and cloud computing solutions.
Recent analyst updates show mixed sentiment on the stock. Truist Financial maintained a Hold rating with a $111 price target.
KeyBanc also kept its Hold rating unchanged. However, Citi analyst Christopher Danely raised his price target to $145 from $120.
Danely cited reduced tariff concerns as a reason for the upgrade. He expects market recovery driven by strong demand and inventory restocking.
The analyst consensus remains Moderate Buy based on 24 Buy and 10 Hold ratings. The average price target of $133.62 suggests limited upside from current levels.
AMD stock has gained 15.78% year-to-date but remains down 25.08% over the past 12 months. The recent earnings announcement helped push shares up 1.39% on Wednesday.
CFO Jean Hu will present at Citi’s Global TMT Conference on September 3, 2025.
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