Nvidia Authorizes Record $150 Billion Buyback, Total Program Reaches $235 Billion

Nvidia's board of directors has authorized an additional $150 billion for share repurchases, marking the largest single buyback authorization increase in corporate history and raising the company's total remaining repurchase authorization to $235 billion. The Santa Clara, California-based chipmaker said on Monday it expects to complete the program through its fiscal year ending January 30, 2028.

The expansion reflects confidence from CEO Jensen Huang and the board in Nvidia's long-term prospects amid sustained demand for its artificial intelligence chips. "NVIDIA's growth is being driven by a once-in-a-generation platform shift to AI and accelerated computing," Huang said in a 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."

The company's decision to deploy significant capital for buybacks underscores its strong financial position. Nvidia reported quarterly profits of $59.69 billion in its most recent quarter and has seen its stock climb approximately 21 to 24 percent year-to-date. On the day of the announcement, Nvidia shares rose 1.7 to 2.1 percent in trading.

Share repurchases serve multiple corporate functions: they return cash to investors, reduce the number of outstanding shares (which can increase earnings per share), and signal management's confidence in the company's financial future. Nvidia's forward price-to-earnings multiple has declined to approximately 24 times, closer to the broader S&P 500 multiple of 20 times, despite the company remaining among the fastest-growing in the U.S.

However, the announcement comes amid growing market skepticism about whether artificial intelligence investments will justify the trillions of dollars being deployed globally. Observers have noted that Nvidia's valuation relative to earnings has declined since the AI boom intensified in mid-2024, suggesting some price moderation even as the company continues to report strong financial results. The chipmaker also faces industry headwinds including pushback against data center expansion and concerns about potential job displacement from rapid AI adoption.