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

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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 per cent in premarket trading. The stock has gained more than 20 per cent 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.

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The announcement follows what had been a roughly 50 per cent 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 per cent 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.

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