Nvidia boosts share buyback by record $150 billion as AI boom fuels growth

Sept 28 — Nvidia bolstered its share buyback authorization by $150 billion, surpassing Apple's $110 billion ​approval in 2024 to mark the biggest-ever increase in a stock repurchase program.

The additional authorization lifts Nvidia's remaining ‌buyback capacity to $235 billion, which it expects to use through fiscal 2028, as surging ⁠demand for AI training ​and inference fuels cash generation.

Shares ⁠of Santa Clara, California-based Nvidia were up 1.2% in premarket ‌trading. The stock has ‌gained more than 20% this year through Friday's close.

Nvidia ⁠shares were last trading at ⁠around 16.5 times its 12-month forward earnings, the lowest level since January 2015 and well below its 15-year average of 30, according to data compiled by LSEG, in what some analysts have suggested is a sign that profit growth ‌expectations are slowing.

The announcement follows what had ​been a roughly 50% slowdown in buybacks overall from July through September 23.

"Our cash generation gives us the capacity to invest in the technologies that advance this transformation and return capital to shareholders," CEO Jensen Huang said in a statement.

Last month, Nvidia forecast about 70% revenue growth for fiscal ​2028, reassuring investors who have questioned how long the AI spending ‌surge can last ‌after ⁠years of explosive growth.

The company has also been investing in AI startups and cloud providers, drawing scrutiny from some investors over whether such funding indirectly supports demand for its own chips.

Nvidia ended ‌the July quarter with $22.44 ​billion in cash and cash equivalents.

(Reporting ‌by Anhata Rooprai in ⁠Bengaluru, additional ​reporting by Shashwat Chauhan; Editing by Shreya Biswas, Christian Plumb and ​Anil D'Silva)

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