Nvidia Dumps $150 Billion Behind Its Own Stock in Historic Buyback Move

Nvidia has increased its share repurchase authorization by $150 billion, taking it to $235 billion through fiscal 2028. This is the largest increase in the company's history.

The move raises questions about Nvidia's valuation, which stands at 24.8 times forward earnings and 28.9 times trailing earnings. The price-to-earnings growth ratio is 0.48, suggesting that the high P/E multiple is supported by rapid profit expansion.

Evan Schlossman, principal at Neostellar Capital, notes that Nvidia's recent growth significantly outpaces the broader market and its valuation is comparable to the S&P 500 on a forward-earnings basis.

Nvidia CEO Jensen Huang says the company's cash generation gives it the capacity to invest in technologies advancing the AI transformation and return capital to shareholders. The move is seen as a reflection of confidence in the long-term AI opportunity.