Huang Wagers Nvidia Shares Are 'Historically Cheap'
Nvidia's stock buyback program is set to be one of the largest in corporate history, with CEO Jensen Huang betting that his company's shares are undervalued despite their astronomical gains over the past two years.
Huang appears convinced that Nvidia's current valuation metrics suggest the stock is 'historically cheap' when measured against forward earnings expectations. This statement is remarkable given the company's already impressive returns in market history.
The scale of the proposed buyback program puts it alongside tech giants like Apple and Microsoft, but Nvidia's situation is unique as a growth story still in its early chapters. Market dynamics are working in Nvidia's favor, with the H100 and upcoming Blackwell chips remaining virtually sold out through 2025.
The company's revenue projections continue climbing, with some analysts predicting Nvidia could hit $200 billion in annual sales within the next few years. By reducing share count now, Nvidia is amplifying the per-share impact of its explosive earnings growth.