Nvidia Puts Record $150 Billion Behind Its Own Stock
Nvidia has announced a record $150 billion share-repurchase authorization, lifting its remaining buyback capacity to $235 billion. This move comes at a time when Nvidia's valuation looks unusually low by historical standards.
The chipmaker expects to use this new authorization through fiscal 2028 and has already been investing in AI technology while returning capital to shareholders. CEO Jensen Huang said that Nvidia's cash generation allows the company to do both.
This $150 billion increase tops Apple's $110 billion buyback approval in 2024, and Nvidia's valuation is currently at its lowest multiple since January 2015, trading at roughly 16.5 times 12-month forward earnings.
Nvidia ended its July quarter with $22.44 billion in cash and cash equivalents, having previously announced an $80 billion buyback in May. The company forecasts around 70% revenue growth for fiscal 2028, driven by demand for AI training and inference.