Nvidia is expanding its stock buyback program by $150 billion, pushing its total authorized and remaining funds to an unprecedented $235 billion. This expansion follows a decision just four months prior, when the semiconductor giant’s board approved an $80 billion addition to the repurchase initiative.
“Nvidia’s growth is being driven by a once-in-a-generation platform shift to A.I. and accelerated computing,” Jensen Huang, Nvidia’s chief executive, said in a statement. “Our cash generation gives us the capacity to invest in the technologies that advance this transformation and return capital to shareholders,” he added. “This authorization reflects our confidence in the long-term opportunity ahead.”
This repurchase expansion follows a financial report issued last month revealing that quarterly revenue more than doubled to $96.22 billion for the period ending in July. Only three years ago, the firm’s quarterly profit stood at $6.2 billion. Driven by massive purchases of its semiconductors by other firms, Nvidia has become the world’s most valuable publicly traded company, boasting a market capitalization of roughly $5.6 trillion. Furthermore, CEO Jensen Huang stated earlier this month that Nvidia plans to double its chip sales volume in 2027, a move that could propel both the business and its shares even higher. According to an August report from S&P Global Ratings, combined capital expenditures by hyperscalers are anticipated to surpass $1.3 trillion by 2027 as businesses rush to construct artificial intelligence infrastructure, such as data centers.
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Shares of Nvidia (NVDA) have advanced 24% over the preceding 12 months, bringing its market capitalization to $5.42 trillion. The equity reacted positively to the repurchase news, advancing 1.8% during early trading sessions. Even as the wider technology sector experienced declines, Nvidia maintained its leadership role propelled by the artificial intelligence boom. Consequently, competing chipmakers like AMD and Intel also saw modest gains following the announcement.