Nvidia authorizes additional $150 billion for share repurchase program
- Nvidia authorized an additional $150 billion for its share repurchase program, according to company announcements and reporting from CNBC and The New York Times.
- The chipmaker expects to complete the remaining portion of the total buyback program through fiscal 2028, Nvidia stated in its newsroom announcement.
- CEO Jensen Huang attributed the company's ability to return capital to shareholders to the cash generated by a platform shift toward accelerated computing and AI.
Nvidia authorized an additional $150 billion for its share repurchase program, according to company announcements and reporting from CNBC and The New York Times. This increase brings the company’s total buyback authorization to $235 billion, marking the largest single share repurchase authorization increase in history.
The chipmaker expects to complete the remaining portion of the total buyback program through fiscal 2028, Nvidia stated in its newsroom announcement. The company’s stock has increased 24% over the last 12 months, according to CNBC.
Nvidia Capital Allocation and AI Infrastructure Growth
CEO Jensen Huang attributed the company’s ability to return capital to shareholders to the cash generated by a platform shift toward accelerated computing and AI. Huang stated that the authorization reflects the company’s confidence in the long-term opportunity ahead.
“NVIDIA’s growth is being driven by a once-in-a-generation platform shift to AI and accelerated computing. Our cash generation gives us the capacity to invest in the technologies that advance this transformation and return capital to shareholders.”
Jensen Huang
The buyback comes amid a period of heavy investment in AI infrastructure. S&P Global Ratings projected in August that combined hyperscaler capital expenditure would exceed $1.3 trillion by 2027 as companies build out data centers.
Product Expansion and 2027 Sales Forecasts
Nvidia’s financial position is supported by its role as a primary provider of the advanced chips required for AI. While the company is best known for its graphics processing units, including the Vera Rubin and Grace Blackwell systems, CNBC reports that Nvidia produces a broader range of semiconductors.
The company’s product portfolio includes:
- Central processors (CPUs)
- Switch chips and chips for optical networking
- Jetson chips designed for cars and robots
- Laptop chips
- The internal chip for Nintendo’s Switch 2 gaming console
He told CNBC that the company expects to generate significant cash in the coming years and intends to return that cash to shareholders annually as it is produced.