AMD, maker of Ryzen and Radeon, has announced a share buyback program worth $4 billion.

In other words, AMD is trying to strengthen its stock price by buying back some of the shares it has issued over the years. The fewer shares on the open market, the less dilutive the share pool and the higher the value per share. Capeche?

"Today's announcement reflects our confidence in AMD's business and the successful execution of our multi-year growth strategy. Strong financial performance and cash generation will allow us to invest in our business and begin to return capital to our shareholders."

It makes sense for a company at its peak to want to reward shareholders whose share price will be boosted by AMD's large share buybacks, while boosting the stock price and investing in its own value.

AMD's total outstanding shares, or market capitalization, is currently just over $92 billion; how many shares AMD can buy back for $4 billion will change over time. Either way, it will be a significant number.

There is no doubt that AMD is on a roll after some of the best years in the company's history. The company's sales for the January-March period of 2021 were $3.45 billion, up 93% from the same period last year

. In addition to this acquisition plan, AMD recently spent $35 billion to acquire Xilinx.