Nvidia today has announced an additional $150 billion share buyback authorisation. The addition takes Nvidia’s total remaining buyback authorisation to $235 billion. The company said its Board of Directors has approved the additional amount under its existing share repurchase programme. Nvidia expects to use the remaining amount through fiscal year 2028.
“NVIDIA’s growth is being driven by a once-in-a-generation platform shift to AI and accelerated computing,” said Jensen Huang, founder and CEO of NVIDIA in an official statement. “Our cash generation gives us the capacity to invest in the technologies that advance this transformation and return capital to shareholders. This authorization reflects our confidence in the long-term opportunity ahead.”
According to Reuters, the $150 billion approval is the largest share buyback authorisation by a company. It surpasses Apple‘s $110 billion approval in 2024. Meanwhile, Nvidia shares rose 2.8% to $231.36 at around 10:30 am ET following the announcement
Nvidia shares trade at lower valuation
The announcement comes as Nvidia’s shares are trading at their lowest valuation in more than a decade. According to LSEG data cited by Reuters, Nvidia was trading at about 16.5 times its 12-month forward earnings. This was the company’s lowest multiple since January 2015 and was below its 15-year average of 30. The latest buyback announcement also comes at a time when overall stock repurchases have slowed. Nvidia’s buybacks fell by roughly 50% between July and September 23, according to Reuters.
AI demand continues to drive growth
Nvidia has been one of the biggest beneficiaries of the surge in spending on artificial intelligence infrastructure. The company produces graphics processing units, or GPUs, that are used for AI training and inference. Last month, Nvidia forecast about 70% revenue growth for fiscal 2028. Reuters reported that the forecast helped reassure investors who have questioned how long the current AI spending boom can continue after several years of rapid growth.
Nvidia has also been investing in AI startups and cloud providers. These investments have drawn scrutiny from some investors over whether the funding indirectly supports demand for Nvidia’s own chips. The company ended the July quarter with $22.44 billion in cash and cash equivalents.
Nvidia plans to increase chip shipments
Nvidia continues to expand its range of products as demand for AI infrastructure grows. The company makes AI-focused GPU systems such as Grace Blackwell and Vera Rubin. It also produces central processing units, switch chips, optical networking chips, laptop chips and Jetson chips used in robots and cars. Nvidia also supplies the chip used in Nintendo’s Switch 2 gaming console.
Huang said earlier this month that Nvidia would double the number of chips it sells in 2027. “I think we’re going through the largest infrastructure buildout in human history, and we have the benefit of being a very central part of that,” Huang told CNBC.
“We’re going to generate a lot of cash in the coming years, and every single year, as we generate more cash, we’d like to be able to return it back to shareholders,” he said. The expanded buyback programme gives Nvidia additional flexibility to return cash to investors and continuing to invest in AI and accelerated computing.
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