GM's CFO says the AI data center boom is raising what it costs to build a truck | Sozzi Unleashed

General Motors authorized a new $20 billion share repurchase this morning with no expiration date on it, and its chief financial officer is unusually blunt about why. Paul Jacobson tells Yahoo Finance the stock is so undervalued that GM sits near the bottom of the S&P 500 on a price-to-earnings multiple, with a double-digit free cash flow yield, and that the board will keep buying "at least as long as these low valuations persist." He says GM has already cut its fully diluted share count by 37% since 2023. He also absorbed $2 billion of inflation this year, and says AI data centers are part of why. Featuring Pras Subramanian, Senior Autos Reporter, Yahoo Finance Paul Jacobson, Executive Vice President and Chief Financial Officer, General Motors Watch the full episode of Sozzi Unleashed: https://youtu.be/PLACEHOLDER-REPLACE-BEFORE-POSTING Timestamps 0:00 The guidance range, and why the midpoint did not move 0:38 Why the fourth quarter is seasonally weaker 1:03 What is boosting free cash flow 1:27 Why 2027 should be another strong cash flow year 1:50 Can GM manage rising input costs 2:36 $2 billion of inflation from commodities, DRAM and semiconductors 3:35 Whether DRAM pricing is an AI data center problem 4:14 The $20 billion buyback, and whether the stock is undervalued 4:30 The capital allocation order: Invest, protect, then return 5:12 Fully diluted shares down 37% since 2023 5:40 When the purchases begin 6:27 Revenue up, unit sales down, and the consumer 6:56 Why volumes fell, and what it did to transaction prices 8:41 Where EV demand settled after the tax credit lapsed 9:03 Restructuring is substantially complete 9:26 EV penetration back in the 5 to 7% range 10:11 Why higher fuel costs are bringing some buyers back #GM #Buybacks #Earnings #SozziUnleashed #YahooFinance == AlphaSpace by Yahoo Finance: A Professional-Grade Investment Platform Built for Everyday Investors. 👉 https://finance.yahoo.com/about/promos/gold/alphaspace?ncid=100003571

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