1. AMD announced a $6 billion stock buyback program amid AI market concerns. 2. AMD's shares fell 18% last year, while Nvidia rose 170%. 3. AMD's free cash flow dropped over 33% to $727 million last quarter. 4. Company's competitiveness in AI market is under scrutiny compared to Nvidia. 5. AMD's total repurchase authority is now about $10 billion.
Despite stock buybacks indicating confidence, AMD's poor performance and cash flow concerns may lead to investor skepticism, similar to past performance declines seen during competitive pressures against Nvidia.
The stock buyback program can help stabilize AMD shares, but ongoing competition and decreasing cash flow raise serious concerns for investors.
Immediate concerns about AMD's market performance can affect investor sentiment in the short run, particularly due to its significant underperformance relative to major competitors.