Stocks
Nvidia Stock Could Double Amid Historic $150 Billion Buyback Plan
Nvidia has announced a $150 billion increase in its share repurchase authorization, taking its total remaining authorization under the ongoing program to $235 billion.
This historic move is a signal for investors to buy the stock, especially given that it could double over the next two and a half years, according to analysts.
Nvidia's terrific growth and cheap valuation are likely why management has made this decision. The company trades at just 29 times trailing earnings, lower than the tech-laden Nasdaq Composite index's average earnings multiple of 39.
The forward earnings multiple of 25 is even more attractive. These multiples clearly indicate that Nvidia stock trades at a discount considering its red-hot growth.