Dr. James Andrews performed the surgery Tuesday, three days after Budinger was injured in a game against the Chicago Bulls.
Minnesota is already playing without Kevin Love, Ricky Rubio, JJ Barea and Brandon Roy because of injuries. Nikola Pekovic sprained his left ankle Monday against Dallas but is hopeful to be back this week.
Budinger emerged as a valuable perimeter player in his first season in Minnesota. He is averaging 11.8 points and had helped fill in for Roy, who has missed two straight games with knee soreness.
Budinger is in the final year of his contract.