Nvidia Authorizes Record $150 Billion Stock Buyback Increase

Nvidia has approved a record $150 billion stock buyback increase, signaling confidence in the chipmaker’s future cash generation. The new authorization expands Nvidia’s remaining share repurchase capacity to $235 billion.

The company described the increase as the largest single addition to a stock buyback program in corporate history.

Nvidia Stock Buyback Breaks Previous Record

Nvidia’s board authorized the additional $150 billion on Monday, Sept. 28. The increase surpassed Apple’s previous record of $110 billion, approved in 2024, according to Reuters.

Nvidia already had approximately $85 billion available under its earlier authorization. Adding the new amount raised the remaining total to $235 billion.

The company expects to execute the program through fiscal 2028, which ends in January 2028.

Nvidia shares rose approximately 2% following the announcement. However, daily stock prices can change quickly.

Authorization Does Not Mean Immediate Purchase

A buyback authorization gives Nvidia permission to repurchase shares. It does not require the company to spend the entire $235 billion immediately.

Nvidia can buy shares through open-market transactions or other approved arrangements. The timing will depend on stock prices, market conditions, cash requirements and other business considerations.

The company can also suspend or modify the program. Investors should therefore distinguish between the authorized amount and completed purchases.

Stock buybacks reduce the number of shares available to investors when repurchased shares are retired. A lower share count can increase earnings per share, even when total profit remains unchanged.

Buybacks can also offset dilution created by employee stock compensation.

AI Growth Fuels Nvidia’s Cash Generation

CEO Jensen Huang connected the decision to rapidly growing demand for artificial intelligence infrastructure.

“NVIDIA’s growth is being driven by a once-in-a-generation platform shift to AI and accelerated computing,” Huang said in the company’s announcement.

Huang said Nvidia can continue investing in new technology while returning capital to shareholders.

The company reported $96.2 billion in revenue during its fiscal second quarter. That represented an increase of 106% from the same period one year earlier.

Nvidia’s data center business generated $89 billion in quarterly revenue. Demand from cloud providers, technology companies and AI developers remained the company’s primary growth driver.

Quarterly net income reached approximately $59.7 billion. Nvidia held $56.6 billion in cash, cash equivalents and marketable debt securities as of July 26.

Nvidia Has Accelerated Earlier Repurchases

Nvidia repurchased 94 million shares for $19.7 billion during its fiscal second quarter. It spent $39.8 billion on 203 million shares during the first half of fiscal 2027.

The company also paid approximately $6 billion in quarterly dividends during the second quarter. Combined repurchases and dividends returned about $26 billion to shareholders.

Nvidia had approved another $80 billion increase to its repurchase program in May. The new $150 billion authorization comes only four months later.

Record Buyback Carries Tradeoffs

Supporters view the Nvidia stock buyback as a sign that management expects AI demand and profits to remain strong. Repurchases may also benefit shareholders by reducing the company’s outstanding share count.

However, buybacks carry risks. Nvidia could repurchase shares at prices that later prove expensive. The money could otherwise support acquisitions, research, manufacturing capacity or additional cash reserves.

The authorization does not guarantee future returns or remove risks facing the AI industry. Nvidia remains exposed to competition, export restrictions, supply constraints and changes in technology spending.

Still, the record authorization demonstrates the extraordinary cash generated by the global AI infrastructure expansion.