Nvidia's Record Buyback Boosts Stock Amid Massive AI Demand

Nvidia Corporation stocks have been on the rise after the company's board approved a record-breaking $150B increase to its share repurchase program, lifting total remaining authorization to $235B through fiscal 2028.

This move has fueled investor optimism as it meets massive demand for AI chips. Anthropic and xAI have committed up to $84.5B for Nvidia-based computing capacity through 2029, while OpenAI's plan to spend roughly $856B on computing power and infrastructure through 2030 signals potentially massive, sustained demand for Nvidia's AI chips and systems.

Nvidia's data center growth has been impressive, running 117% year over year, with gross margin near 74.7% and EBIT margin around 68%. The company's valuation is rich, but explosive revenue growth and massive returns on equity above 100% explain why the market is still willing to pay up.