6 Billion Reasons To Buy This Artificial Intelligence (AI) Semiconductor Stock Hand Over Fist (Hint: It's Not Nvidia)

Group 1 - Advanced Micro Devices (AMD) has announced a $6 billion increase to its share buyback program, bringing the total to$10 billion [3] - AMD's stock has declined approximately 30% over the past year, despite ramping up buyback activity [5] - The company generated $7.4 billion in revenue in Q1, reflecting a 36% year-over-year increase, although there is deceleration in gaming and embedded segments [6] Group 2 - The data center business accounts for about half of AMD's total revenue and has a higher operating margin compared to other segments [7] - AMD has attracted notable customers from Nvidia, including Oracle, Microsoft, and Meta Platforms, for its MI300 accelerators [8] - The new buyback program indicates management's belief that AMD shares are undervalued, particularly in light of its AI chip business still being in early stages [9] Group 3 - AMD's forward price-to-earnings (P/E) multiple may not seem cheap, but there is a clear valuation compression trend [11] - The timing of the new repurchase authorization aligns with AMD's upcoming launch of new GPU architectures, suggesting management's confidence in long-term demand [13] - AMD's stock is down nearly 50% from its all-time high, presenting a potential buying opportunity for long-term investors [14]