Nvidia boosted its share buyback authorization by a record $150 billion, surpassing Apple’s $110 billion approval in 2024, as the chip giant’s stock trades near its lowest valuation in more than a decade.
Shares of Santa Clara, Calif.-based Nvidia, which has a market cap of more than $5.5 trillion, rose more than 2% in morning trading. The stock has gained more than 20% this year through Friday’s close.
The additional authorization lifts Nvidia’s remaining buyback capacity to $235 billion, which it expects to use through fiscal 2028, as surging demand for AI training and inference fuels cash generation.
Nvidia shares were trading at about 16.5 times 12-month forward earnings, their lowest multiple since January 2015 and well below the 15-year average of 30, according to LSEG data, which some analysts see as a sign of slowing profit-growth expectations.
The announcement comes amid a slowdown in stock buybacks, which fell roughly 50% from July through Sept. 23.
“Our cash generation gives us the capacity to invest in the technologies that advance this transformation and return capital to shareholders,” CEO Jensen Huang said in a statement.
Nvidia’s $150 billion buyback increase exceeds the market capitalization of about 84% of the S&P 500 constituents, according to data compiled by LSEG.
“The AI buildout won’t continue at its current pace forever, but Nvidia is signaling confidence that demand for its hardware and services has staying power,” said Jacob Bourne, an analyst at Emarketer.
“Its cash generation is currently strong enough that it believes it can continue investing heavily in the business while also returning capital to shareholders,” he added.
Nvidia ended the July quarter with $22.44 billion in cash and cash equivalents.
Last month, Nvidia forecast about 70% revenue growth for fiscal 2028, reassuring investors who have questioned how long the AI spending surge can last after years of explosive growth.
