Nvidia Drops $150 Billion on Stock Buyback Plan Amid AI Boom

Nvidia has announced a historic stock buyback plan worth $150 billion, a move that demonstrates CEO Jensen Huang's confidence in funding AI research and development while rewarding shareholders.

The massive buyback plan is seen as a bet by Huang that Nvidia can finance huge swaths of the AI buildout without sacrificing its commitment to innovation. In contrast, Alphabet has had to choose between investing in AI projects and buying back shares, opting for the former this year and selling new shares to fund it.

Huang emphasized that Nvidia's cash generation gives it the capacity to invest in technologies that advance the transformation of the industry while returning capital to shareholders. The company has become a linchpin of the AI economy, financing customers who use its chips and guaranteeing data center leases for unprofitable labs.