Nvidia Drops the Hammer on Stock Buyback, Betting Big on its Own Value
Nvidia's record-breaking stock buyback is a testament to its CEO Jensen Huang's confidence in his company's stock. The chipmaker announced an additional $150 billion to its share repurchase program, bringing the total to $230 billion. This move comes as Nvidia's price-to-earnings ratio for fiscal 2028 sits at just 14.5, below that of all its megacap peers except Micron.
The company's stock has been lagging behind expected earnings growth, despite a 23% increase this year. Analysts predict Nvidia will hit net income of close to $385 billion in fiscal 2028, up 60% from the prior year and more than fivefold over a three-year stretch.
Huang sees Nvidia as both a 'growth' and 'value' stock, implying that it should be highly valued for its growth as well as its future earnings. He told investors at a Goldman Sachs conference that buying back Nvidia stock is a 'tremendous opportunity.'