Nvidia Boosts Buyback Plan by $150 Billion, Setting Record

Nvidia has increased its share repurchase authorization by $150 billion, surpassing Apple’s $110 billion approval in 2024 and marking the largest-ever increase in a stock buyback programme. The additional authorization takes Nvidia’s remaining buyback capacity to $235 billion, which the chipmaker expects to use through fiscal 2028 as strong demand for artificial intelligence training and inference continues to drive cash generation.

Nvidia shares rose 1.2% in premarket trading, extending gains of more than 20% this year through Friday’s close. The company’s shares were recently trading at around 16.5 times 12-month forward earnings, their lowest valuation multiple since January 2015 and below the 15-year average of about 30 times, according to LSEG data. The development comes amid a broader slowdown in corporate share repurchases between July and September 23.

CEO Jensen Huang said Nvidia’s strong cash generation provides the company with the capacity to invest in technologies driving the AI transformation while returning capital to shareholders. Nvidia, which ended its July quarter with $22.44 billion in cash and cash equivalents, last month forecast about 70% revenue growth for fiscal 2028. The company has also been investing in AI startups and cloud providers, attracting scrutiny from some investors over the impact of such investments on demand for its chips.

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