Nvidia Unleashes Record $150B Stock Buyback Blitz
Nvidia has announced a record-breaking stock buyback of $150 billion, taking its total buying power to $235 billion. This move is expected to reduce Nvidia's market cap by 4.2% over the next 16 months and potentially increase its adjusted earnings per share (EPS) by 1.6%. CEO Jensen Huang stated that this authorization reflects the company's confidence in its long-term opportunity.
The news has sent shares higher, with Nvidia stock currently trading at $230.67. Market experts are impressed by the move, with Gary Black of The Future Fund noting that it increases Nvidia's buying power to a theoretical total of $235 billion. Ross Gerber of Gerber Kawasaki also praised the decision, saying 'Nvidia announcing the largest stock buyback ever as the stock proves to be way too cheap for Jensen to ignore. Very much like this move!'
Nvidia has been under pressure to meet optimistic earnings and revenue forecasts, and the company's board of directors added $150 billion to its existing buyback authorization in response. The company plans to execute the remaining share buybacks through fiscal 2028.