Nvidia Adds Record $150 Billion to Share Buyback Plan

Nvidia on Monday added $150 billion to its share repurchase authorisation, the largest single increase in a buyback programme on record. The move surpasses the $110 billion boost Apple announced in 2024, which had held the title until now.

With the fresh approval, the chipmaker's remaining buyback capacity rises to $235 billion. Nvidia said it expects to use that amount through fiscal 2028, funded by the cash that continues to pour in from demand for chips used to train and run artificial intelligence models.

A Buyback At A Discount

The timing is notable. Nvidia's shares were trading at roughly 16.5 times their expected earnings over the next 12 months, according to data compiled by LSEG. That is the lowest valuation for the stock since January 2015 and far below its 15-year average multiple of about 30.

Some analysts have read that compressed valuation as a signal that investors expect profit growth to slow after years of explosive expansion. By committing so much capital to buying back its own stock, Nvidia is effectively signalling that it sees the shares as undervalued at current levels.

The stock rose about 1.2% in US premarket trading after the announcement. It had gained more than 20% this year through Friday's close.

Growth Story Still Intact, Says Management

Chief executive Jensen Huang tied the decision to what he described as a once-in-a-generation shift toward AI and accelerated computing, saying the company's cash generation lets it both invest in new technologies and return capital to shareholders.

Nvidia had already sought to reassure investors last month, when it forecast revenue growth of about 70% for fiscal 2028. That guidance was aimed at a market that has increasingly questioned how long large technology companies can keep up their heavy spending on AI infrastructure.

The company ended its July quarter with $22.44 billion in cash and cash equivalents.

Questions That Remain

The buyback does not settle every concern around the company. Nvidia has been investing in AI startups and cloud providers, some of which are also its customers. That has drawn scrutiny from investors who question whether such funding indirectly props up demand for its own chips.

The announcement also stands out against a broader slowdown in corporate repurchases. Buybacks across the market had slowed by roughly half between July and late September, making Nvidia's move an outlier.

Why It Matters Beyond Wall Street

Nvidia is one of the most valuable companies in the world, and its share price has an outsized influence on global technology indices and on sentiment toward AI-linked stocks everywhere, including in Asia and India. A large, sustained buyback can put a floor under the stock during volatile periods, which may help steady the wider tech trade at a time when high oil prices and rising bond yields are weighing on global equities.

For investors, the key question is whether the company's earnings keep growing fast enough to justify the confidence it is showing in its own shares.

This is an original summary based on public reporting. See our editorial policy for how we source, write, and correct our stories.