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Nvidia Closes at $238.90 as Investors Weigh AI Growth
Nvidia’s board authorized repurchases on its own schedule, while retirees holding shares in IRAs can sell without triggering capital-gains tax.
Nvidia recently expanded its stock buyback authorization by $150 billion, bringing the total program to $235 billion, the largest buyback boost on record.
Strong financial performance supports this expansion; Nvidia's free cash flow surged 77% to nearly $70 billion in the first half of fiscal 2027, with analysts expecting $190 billion for the full year.
CEO Jensen Huang claims the plan reflects the company's "confidence in the long-term opportunity ahead," while buybacks reduce outstanding shares and offset dilution from stock-based compensation.
Investment commentator Jim Cramer noted that buybacks "can't be episodic," requiring Nvidia to deploy capital when selling pressure is greatest to avoid negative market swings.
Despite the massive expansion, the $235 billion program equals only 4% of Nvidia's $5.65 trillion market cap, though the company remains essential "picks and shovels" provider for artificial intelligence.