Qualcomm Inc. is buying back $16 billion of its own stock as part of a broader goal of repurchasing up to $30 billion of its shares.
The San Diego chipmaker’s board authorized the $30-billion stock-buyback goal in July as the company terminated its attempt to buy Dutch chipmaker NXP Semiconductors. Qualcomm had planned to buy NXP in a huge cash deal, but it scrapped the effort after Chinese antitrust regulators long delayed approval.
It announced the first phase of those buybacks Thursday.
The company said it expects to buy back an initial 178 million shares from Bank of America, Citibank and Morgan Stanley & Co. The final figure will be determined during the transaction.
Qualcomm said it was on track to complete the majority of its broader repurchase program by the end of fiscal 2019, which ends in fall 2019.
Shares of Qualcomm rose 4% to $74.61 on Thursday. The stock is up 16.5% this year.
1:20 p.m.: This article was updated with Qualcomm shares’ closing price.
This article was originally published at 7:25 a.m.