Nvidia Adds $150 Billion to Largest Ever Stock Buyback

Nvidia has expanded its stock buyback initiative with an additional $150 billion, pushing its total authorized remaining balance to an unprecedented $235 billion. This latest expansion arrives just four months after the semiconductor giant’s board approved an $80 billion addition to the repurchase plan.

“Nvidia’s growth is being driven by a once-in-a-generation platform shift to A.I. and accelerated computing,” Jensen Huang, Nvidia’s chief executive, 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,” he added. “This authorization reflects our confidence in the long-term opportunity ahead.”

The repurchase expansion follows a financial report from last month revealing that quarterly revenue more than doubled to $96.22 billion for the period ending in July. Only three years prior, the company’s quarterly profit stood at $6.2 billion. Driven by massive corporate purchases of its processors, Nvidia has become the world’s most valuable publicly traded enterprise, boasting a market capitalization of approximately $5.6 trillion. Furthermore, CEO Jensen Huang announced earlier this month that Nvidia plans to double its chip sales volume in 2027, a move that could propel the firm and its shares to even greater heights. S&P Global Ratings noted in August that combined hyperscaler capital expenditures are expected to surpass $1.3 trillion by 2027 as businesses scramble to construct artificial intelligence infrastructure and data centers.

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Shares of Nvidia (NVDA) have advanced 24% over the trailing 12 months, elevating the corporation’s market valuation to $5.42 trillion. The equities reacted favorably to the repurchase announcement, gaining 1.8% during early trading sessions. Even as the broader technology sector experienced declines, Nvidia maintains its leadership role fueled by the artificial intelligence surge. Consequently, semiconductor competitors including AMD and Intel also saw modest gains following the news.