Advanced Micro Devices Inc. (NASDAQ:AMD) is riding its strongest rally in two years – and now, it's firing on all cylinders with a fresh catalyst: a $6 billion stock buyback plan.
The announcement, coupled with a string of recent wins, has sent AMD shares soaring over 21% in the past month.
AMD Stock Technical Breakout In Progress
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AMD has broken past resistance at around $115 and is charging toward its 200-day simple moving average (SMA) of $127.18. With the stock trading above its five, 20, and 50-day exponential moving averages, technical signals remain bullish.
The MACD (moving average convergence/divergence) indicator at 4.4 suggests continued buying strength, though the RSI (relative strength index) sitting at the cusp of overbought conditions at 70, flags near-term caution.
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Shorter-term indicators still support the momentum. The eight-day SMA at $107.24, the 20-day at $99.23, and the 50-day at $99.21 all sit well below the current price – reinforcing the trend strength.
However, the stock has not yet cleared the 200-day SMA, which could act as a crucial test in coming sessions.
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Buybacks, Big Deals, And Beating Expectations
The buyback boost brings AMD's total repurchase firepower to $10 billion, thanks to the existing $4 billion balance from a prior authorization. With $7.31 billion in cash on hand, AMD has room to keep rewarding shareholders.
Momentum has been building fast: the company recently posted first quarter earnings that beat expectations – $7.44 billion in revenue and 96 cents in adjusted EPS, topping estimates of $7.13 billion and 94 cents, respectively. It also announced a $10 billion data center deal in Saudi Arabia and inked a GPU cluster partnership with TensorWave.
From technical breakout to buyback buzz, AMD's rally has legs – and the bulls don't seem ready to let go just yet.
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