The Trump Dump is starting; Get out of stocks now? (From Paradigm Press) |
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Several large-cap stocks recently announced buybacks worth billions, boosting their ability to return capital to shareholders. However, these names also have other important recent developments surrounding them that have big implications for shareholders. |
One company is joining forces with a top Warren Buffett stock pick to give itself a big source of future revenue. Another announced a huge foreign AI deal, and the last company is now returning capital to shareholders in multiple ways. |
All data used is as of the May 16 close. |
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So, unless you've been living under a rock, you probably saw the news…
Nvidia just signed a $7 BILLION deal with Saudi Arabia to power its new AI empire π€―
We're talking about hundreds of thousands of chips, including their latest Grace Blackwell supercomputer. |
π― Click here to watch the video and get the free ticker XGPT just flagged. |
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Weyerhaeuser: Teaming Up With a Buffett-Favorite for Long-Term Revenue Generation |
First up is Weyerhaeuser (NYSE: WY). Weyerhaeuser is one of the world's largest owners of timberland, controlling millions of acres of forest used to grow and harvest timber. The company is also one of the largest producers of wood products in North America. |
Weyerhaeuser recently announced a share buyback program worth $1 billion. The company has spent almost $100 million in buybacks so far in 2025, which completed its previous $1 billion buyback program. For Weyerhaeuser, $1 billion represents around 5% of the company's market capitalization. The company also has a very solid indicated dividend yield of around 3.2%. |
For Weyerhaeuser, the other important news was an update on its partnership with one of Warren Buffett's biggest recent bets. Weyerhaeuser has a partnership with Occidental Petroleum (NYSE: OXY) to capture and sequester carbon dioxide (CO2) gas. Weyerhaeuser has agreed to lease 30,000 acres of underground space below its forest to store CO2. Occidental recently announced a 25-year agreement with CF Industries and other partners to store 2.3 million tons a year of CO2 under Weyerhaeuser's forest. The facility that CF Industries is building won't be operational until 2029. However, once it is, Weyerhaeuser will have a long-term source of revenue that will cost the company relatively little. Weyerhaeuser will still continue to grow and harvest timber above the land. This agreement now lets Weyerhaeuser generate revenue from the underground area that it wasn't making any money from before. |
Advanced Micro Devices: Billions in Buybacks and Saudi Business |
Next up is chip stock Advanced Micro Devices (NASDAQ: AMD). AMD's overall value is under 10% of NVIDIA's (NASDAQ: NVDA). However, it is still NVIDIA's biggest competitor in the graphics processing unit market. These are the highly advanced chips used to train frontier AI models. AMD recently announced a substantial $6 billion share buyback program. |
A key point in this announcement is that this repurchase adds to the $4 billion the company had left from its last buyback plan. Overall, AMD now has $10 billion in share buyback capacity. This is equal to over 5% of the stock's market capitalization as of the May 16 close. |
The other huge piece of news was the deal AMD struck with Saudi Arabia. AMD announced a $10 billion deal with HUMAIN, a new AI company operated by the Saudi government, to supply AI computing technology. This comes as the Trump administration ended the AI Diffusion rule, clearing the path for U.S. chip companies to work with the country. This likely won't be the last agreement struck by AMD and countries that have had their AI ambitions limited by the AI Diffusion rule. |
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Western Digital: Post-SanDisk Split, Buybacks, and Dividends Are Ramping Up |
Last up is Western Digital (NASDAQ: WDC). The company is among the leaders in the hard disk drive (HDD) and solid-state drive (SSD) market. This hardware stores information like electronic documents and program files on a personal computer. This also extends to storing information in cloud data centers, which accounted for 87% of its total revenue last quarter and saw growth of 38%. |
Western Digital announced a $2 billion share buyback program. This is equal to a very large 11% of the company's market cap, highlighting the confidence the firm has in the future of its business. AI is set to increase data generation, which will create significant demand for the company's products going forward. Note that the large drop in revenues last quarter is due to the firm's separation from SanDisk and is not indicative of underlying weakness. |
In other big news, the company also announced it will begin paying a quarterly dividend. This will be the first time the firm has done so since 2020. Right off the bat, Western Digital has a notable dividend yield of around 0.8%. The company is now returning capital in two ways, a big benefit to shareholders. |
More Than Just Buybacks: A Broader Investment Thesis |
While billion-dollar buybacks grab headlines, the bigger picture for Weyerhaeuser, AMD, and Western Digital is their forward-looking strategies. Each company is leveraging unique partnerships, expanding into key growth areas, or re-engaging shareholders through dividends. For investors, these moves suggest real depth behind the capital returns and a reason to watch these stocks beyond the next quarter. |
Written by Leo Miller |
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