Nvidia Doubles Down on Buyback Authorization

Nvidia recently increased its share repurchase authorization by $150 billion to $235 billion, making it the largest boost in history. This move is seen as a positive sign for the stock, with Nvidia's shares rising around 2% after the announcement.

Historically, Apple's buyback authorizations of $90 billion or more have been followed by a gain in the stock over the next 12 months, and Nvidia's record authorization may follow this trend. Over the past year, Nvidia's diluted share count has only fallen about 1%, despite almost $40 billion in buybacks.

Nvidia expects to spend the remaining amount through fiscal 2028, which ends in January 2028, with a goal of more than doubling its current buyback rate. This move is seen as a sign that management expects free cash flow to continue rising.