Nvidia's Record-Breaking Buyback Sets Stage for Stock Surge

Nvidia recently added $150 billion to its share repurchase authorization, making it the largest boost in history. The move brings the total amount left to $235 billion, which would be used to buy back around 4% of the company's outstanding shares.

The increase follows Apple's own record-breaking authorizations of $90 billion or more from 2018 through 2025, which were each followed by a gain in the stock over the next 12 months. In eight of these nine cases, the stock beat the S&P 500.

Nvidia's diluted share count has fallen only about 1% over the last year, despite almost $40 billion of buybacks over the fiscal year's first half. Earnings per share have more than doubled in this period.