NVIDIA Unveils Record-Breaking $150 Billion Stock Buyback Plan
NVIDIA has announced a record-breaking stock buyback program, adding $150 billion to its existing authorizations. This new authorization brings the combined total to $238 billion, according to CNBC's Jim Cramer.
Cramer believes that if NVIDIA actively repurchases shares on a daily basis, it will change the trajectory of the stock. He made this statement in his commentary on the announcement, referencing Apple's former CFO Luca Maestri, who was known for buying back shares during downturns.
NVIDIA's cash generation is accelerating, with free cash flow reaching $21.34 billion in its second quarter of fiscal 2027, a 58.43% year-over-year increase. The company has already returned a record $26 billion to shareholders this quarter through share repurchases and dividend payments.
The execution risk is real, as Cramer noted that NVIDIA sometimes cannot buy back stock due to zero-day options activity blocking the stock. However, for investors in it for the long haul, the boost signals a company generating more cash than its growth plans absorb.