Nvidia has authorised a record $150 billion increase to its share repurchase programme, the largest single boost to a buyback authorisation in history, as the chipmaker underscores management's confidence in sustained demand for artificial intelligence technology.
The Santa Clara-based company said its board approved the additional capacity on 28 September, lifting its remaining buyback authorisation to $235 billion, with execution expected through fiscal 2028.
Nvidia had previously expanded its buyback authorisation in May 2026, although the exact earlier amount should be independently confirmed against the relevant announcement.
Monday's move takes the total remaining authorisation to $235 billion, eclipsing Apple's $110 billion programme approved in 2024, according to reports.
Why Nvidia's $150 Billion Buyback Matters for the AI Trade
The announcement sent Nvidia shares up nearly 2 per cent on the day, outperforming several large-cap tech peers as investors parsed the signal from management.
In a statement, chief executive Jensen Huang tied the decision to what he called a 'once-in-a-generation platform shift to AI and accelerated computing,' adding that strong cash flow allowed the company to invest in new technologies while returning capital to shareholders.
For bullish investors, the timing of the announcement is significant. Nvidia's forward price-to-earnings multiple has been compressing since August 2024, even as revenue and earnings have surged on AI demand.
Recent data put the forward P/E around 16.5 times, near its lowest level since January 2015 and below its 15-year average of about 30 times, according to LSEG figures cited by Reuters. The relatively low forward valuation may make share repurchases more attractive, although this does not establish management's view of the stock's intrinsic value.
Ben Emons, founder of FedWatch Advisors, has crunched the numbers on large repurchase announcements and found that stocks typically rise about 3.5 per cent in the three-day window around such news, while firms announcing big buybacks have delivered roughly 12 per cent returns over four years.
Nvidia itself has seen an average 24 per cent gain in the 12 months after announcing a large buyback plan, though Emons noted its follow-through has not been the strongest among peers, partly because of the company's elevated equity exposure on its balance sheet.
Alphabet, by contrast, has posted the strongest 12-month return at more than 40 per cent after similar moves. Past returns do not guarantee future performance.
Nvidia Stock Buyback Plan and What Comes Next for Investors
The scale of the programme is substantial. Monday's $150 billion increase exceeds the market capitalisation of about 84 per cent of S&P 500 constituents, according to LSEG data compiled.
Nvidia ended its July quarter with $22.44 billion in cash and cash equivalents, and has already been aggressive in returning capital, including about $26 billion to shareholders via buybacks and dividends in its most recent quarter.
Yet the context is not entirely one-sided. Through late September, Nvidia's stock was up just over 20 per cent year to date, broadly in line with the Nasdaq 100 but trailing AMD, which has more than doubled, and Intel, which has more than tripled, according to reports.
Other trackers put Nvidia's year-to-date gain at around 22.7 per cent, behind the broader semiconductor industry's 30.2 per cent rise, with peers such as Intel and Texas Instruments posting 214 per cent and 60.6 per cent respectively.
The relative performance has prompted questions about whether further gains from the AI trade will be harder to achieve, even as Huang continues to pitch a multi-year runway for AI infrastructure build-out.
Some analysts see the buyback as a page out of Apple's playbook, using repurchases to support the share price as growth expectations moderate and valuation multiples come under pressure.
Under a hypothetical six-quarter schedule to the end of fiscal 2028, Nvidia could theoretically repurchase more than $39 billion of its own stock per quarter if it uses the full $235 billion authorisation on pace, although this is not an actual repurchase schedule and depends on cash generation and investment priorities.
Whether that pace is realistic will depend on how much cash the company continues to generate from AI chip sales, and how much it chooses to reinvest in new product development, fabs and supply-chain capacity.
The authorisation demonstrates the board's willingness to allocate additional capital to share repurchases. Nvidia's expanded share repurchase authorisation provides the company with greater flexibility to return capital to shareholders while continuing to invest in AI infrastructure, product development and supply-chain capacity.
However, the $235 billion authorisation does not mean that Nvidia is committed to repurchasing the entire amount on a fixed schedule. The pace of future buybacks will depend on cash generation, investment requirements and the company's capital allocation decisions.
The announcement highlights management's confidence in the long-term demand for AI and accelerated computing, according to Huang's statement.
Whether that confidence translates into further share-price gains will depend on Nvidia's financial performance, competitive position and the sustainability of AI-related spending.
