Nvidia announces record $150 billion share buyback increase

Nvidia authorized a $150 billion increase to its share repurchase program on Monday, raising the total remaining buyback authorization to $235 billion — the largest share repurchase authorization increase in history, the company said. The new authorization surpasses the $110 billion buyback Apple unveiled in May 2024, according to Reuters. It also comes four months after Nvidia’s board added $80 billion to the program, according to The Wall Street Journal. The company expects to complete the total remaining program through fiscal year 2028. “Nvidia’s growth is being driven by a once-in-a-generation platform shift to AI and accelerated computing,” Chief Executive Officer Jensen Huang 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. This authorization reflects our confidence in the long-term opportunity ahead.” As of the July quarter, Nvidia held $22.44 billion in cash and cash equivalents on its balance sheet. The company reported record sales of $96.2 billion for that quarter, according to the Journal, and has guided for 70% revenue growth in fiscal year 2028. Nvidia shares climbed about 1.2% before Monday’s open and have added more than 20% in value so far this year, measured through Friday’s close. The buyback announcement comes as Nvidia has expanded beyond chip sales. According to the Journal, Nvidia disclosed that it holds stakes in 13 publicly traded firms and 229 private ones, with realized exits delivering returns exceeding three times its original investment. The company has also entered into long-term data center lease agreements worth roughly $20 billion to bolster the AI ecosystem, with plans to hand those agreements off to other companies, the Journal reported. Nvidia told CNBC it plans to return excess free cash flow from those investments through share repurchases and a dividend that it expects to grow over time. “We’re going to generate a lot of cash in the coming years, and every single year, as we generate more cash, we’d like to be able to return it back to shareholders,” Huang told CNBC’s “Squawk Box” on Monday. Nvidia commands the market for AI data center chips and has accumulated a market capitalization exceeding $5.4 trillion, a figure unmatched by any other company globally.