Nvidia Breaks Records with $150 Billion Buyback

Nvidia's board has authorized a record $150 billion buyback, surpassing Apple's previous record of $110 billion set in 2024. This boost takes the company's total share repurchase authorization to $235 billion. With around 24.1 billion shares outstanding, Nvidia is worth about $5.5 trillion at its current price of around $230 a share.

The full $235 billion would buy back slightly over 4% of the company. Nvidia expects to spend the remaining amount through fiscal 2028, which ends in January 2028. This will more than double the current rate, with management counting on increasing free cash flow to support this move. The company's CEO, Jensen Huang, linked the decision to its 'cash generation'.

Historically, Nvidia and Apple have shown positive stock performance following similar buyback authorizations. In eight out of nine cases, their stocks beat the S&P 500 over the next 12 months. However, the source notes that these gains may be more due to the companies' growing cash reserves than the buybacks themselves.

Nvidia's own record is impressive, with its stock rising around 175%, 43%, and 26% respectively after each of the last three buyback authorizations. While some wins were narrow, Nvidia's 2025 lead was significant, with shares jumping after its next earnings report. The source suggests that cash flow rather than buybacks may be the driving force behind these gains.