Nvidia Adds $80 Billion to Buyback Plan Amid Supply Chain Constraints

Nvidia's (NVDA) latest move has sent a strong signal to investors that the company is committed to returning cash to shareholders, and its business remains robust despite supply chain challenges.

The company recently expanded its capital return program, adding another $80 billion to its repurchase authorization. This brings the total available for buybacks to around $99 billion at the end of Q2 FY2027. Nvidia returned a record $26 billion in Q2, surpassing its 50% free cash flow target.

Nvidia's business is driven by the demand for its AI computing products, which are used by every cloud provider and government. Management has stated that supply will remain constrained through fiscal year 2028, giving the company a strong revenue visibility.