Nvidia boosts share buyback by record $150 billion as AI boom fuels growth
The chipmaker said the increase is the largest on record and lifts remaining repurchase capacity to $235 billion through fiscal 2028.
- On Monday, California-based Nvidia's board authorized an additional $150 billion for its share-repurchase program, marking the largest such increase on record and bringing total remaining capacity to $235 billion.
- Rapid revenue growth driven by a once-in-a-generation shift to artificial intelligence and accelerated computing underpins Nvidia's aggressive capital return strategy and cash generation capacity.
- The company expects to execute the $235 billion program through fiscal year 2028, with the figure representing remaining capacity rather than an immediate spending commitment.
- Shares of Nvidia rose 1.7% in premarket trading on the day of the disclosure, as investors responded positively to the capital return announcement.
- CEO Jensen Huang said, "Our cash generation gives us the capacity to invest in the technologies that advance this transformation and return capital to shareholders.
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The "buyback" means buying your shares on the market, as Nvidia is doing is an increasingly widespread and criticized financial strategy.
Nvidia dramatically increases share buybacks, sending a clear signal of the chip giant's faith in the AI boom
Nvidia is going to buy back a record amount of its own shares: 150 billion dollars on top of the 85 billion dollars the company had already planned. Nvidia is making so much profit that, according to macroeconomist Arnoud Boot, this buyback program is quite justified. Nevertheless, he is concerned that Nvidia is setting a precedent for itself with this move. That is dangerous, the economist believes.
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The Seattle TimesNvidia adds $150 billion to massive stock buyback, the largest ever
Nvidia said Monday it would spend another $150 billion buying back its own shares, adding to what it said was the largest repurchase in history, as the chip company continues to cash in on a global race to dominate artificial intelligence.
The operation should be completed in 2028 and surpasses that made by Apple in 2024, until then the largest in history.
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