Nvidia Corp. announced the largest stock buyback authorization in U.S. corporate history on Monday, with its board approving a $150 billion increase to the company’s share-repurchase program. The move brings Nvidia’s total buyback authorization to $235 billion, surpassing Apple’s previous record $110 billion program from 2024.
The repurchases are expected to be executed through fiscal 2028, which ends in January of that year. Nvidia did not specify a precise pace for the buybacks. Chief Executive Jensen Huang linked the decision to the company’s cash generation from the artificial intelligence boom, saying: “NVIDIA’s growth is being driven by a once-in-a-generation platform shift to AI and accelerated computing.”
Huang added that the authorization reflects confidence in the long-term opportunity ahead and that cash generation gives Nvidia capacity to invest in technology while returning capital to shareholders.
Nvidia shares rose more than 3% at the market open, after earlier premarket gains of about 1%. The stock carried a market capitalization of roughly $5.42 trillion and has climbed about 21% year-to-date heading into Monday’s session. Rival chipmakers AMD and Intel also ticked higher in sympathy, even as broader markets remained weak amid rising oil prices and bond yields, with the 10-year Treasury yield reaching 5.23%.
The buyback is backed by extraordinary free cash flow. FactSet estimates put Nvidia’s free cash flow at $183 billion for this year, while Visible Alpha consensus suggests that figure could more than triple to $329 billion by fiscal 2028. Nvidia ended its July quarter with $22.4 billion in cash and cash equivalents.
Despite the cash strength, the stock trades at about 16.5 times 12-month forward earnings, its lowest level since January 2015. Some investors remain cautious about margin pressure and competition from large customers developing their own AI silicon, including Meta Platforms and Alphabet. Huang has pushed back against that caution, describing Nvidia at a recent Goldman Sachs event as “the world’s first and only growth value stock.”
