Nvidia Boosts Buyback Plan by Record $150 Billion
Nvidia's board has added $150 billion to its share repurchase authorization, bringing the total left for buybacks to $235 billion. This is the largest boost to a buyback authorization in history and surpasses Apple's recent record of $110 billion.
Since Nvidia's own increases in 2023 through 2025, as well as Apple's bigger buyback authorizations from 2018 through 2025, have been followed by gains in the stock over the next 12 months, investors are likely to view this news positively. In eight of these nine cases, the stock beat the S&P 500.
Nvidia expects to spend the remaining $235 billion on buybacks through fiscal 2028, which would more than double its current rate. The company's free cash flow for fiscal 2027's first half was $69.9 billion, a 77% increase from the previous year. CEO Jensen Huang linked this move to the company's 'cash generation' in the announcement.
Shares of Nvidia rose about 2% on Monday following the news and trade at around 15 times its expected fiscal 2028 earnings. In comparison, Apple trades at about 36 times its expected earnings for fiscal 2027.