NVIDIA Increases Its $150 Billion Stock Buyback Program to $235 Billion
NVIDIA announced that it is expanding its share repurchase program by an additional $150 billion, bringing the program’s total value to $235 billion, amid record demand for artificial intelligence technologies and massive investments in the sector.
The company explained that this increase represents the largest share repurchase authorization in the history of financial markets and that it expects to fully execute the program by fiscal year 2028.
This move comes as NVIDIA’s stock has risen 24% over the past 12 months, bringing the company’s market capitalization to $5.42 trillion, with the stock posting a 2.8% gain in Monday’s trading.
CEO Jensen Huang said in an official statement:
NVIDIA’s growth is driven by a major industry shift toward artificial intelligence and accelerated computing. Our ability to generate cash flow allows us to invest in technologies that are driving this transformation and to continue returning capital to shareholders. This move reflects our confidence in the company’s long-term opportunities.
According to estimates by S&P Global Ratings, total capital expenditures by major technology companies to build artificial intelligence infrastructure—including data centers—will exceed $1.3 trillion by 2027.
NVIDIA’s CEO explained that the company plans to double the number of chips it will sell in 2027, while continuing to diversify its product lineup to include graphics processing units (GPUs) designed for artificial intelligence, as well as the Grace Blackwell and Vera Rubin systems, as well as central processing units (CPUs), switch chips, optical networking chips, laptop chips, and Jetson modules designed for robotics and automotive applications, in addition to the chip integrated into the “Nintendo Switch 2” gaming console.
Huang concluded by saying:
We are witnessing the largest infrastructure expansion in history, and NVIDIA is a key part of this growth. We will continue to generate strong cash flows in the coming years, and we strive each year to return even more value to our shareholders.