Nvidia Authorizes Record $150 Billion Buyback Increase as AI Demand Accelerates

Nvidia announced a $150 billion increase to its share repurchase program on Monday, marking the largest buyback authorization in corporate history and signaling the chipmaker’s confidence in sustained AI-driven growth.

The additional authorization lifts Nvidia’s total remaining buyback capacity to $235 billion, which the company expects to execute through fiscal 2028.

The move surpasses Apple’s $110 billion buyback boost in 2024, which previously held the record.

Nvidia shares rose about 1% in premarket trading following the announcement, bucking a broader market selloff.

The stock has gained more than 20% this year, lifting the company’s market valuation to approximately $5.4 trillion.

“We’re generating a lot of cash, we’re going to generate a lot of cash in the coming years,” CEO Jensen Huang said in an interview with CNBC. “Every single year, as we generate more cash, I’d like to be able to return it back to the shareholders”.

In a statement, Huang framed the buyback as a reflection of Nvidia’s underlying business momentum. “Nvidia’s growth is being driven by a once-in-a-generation platform shift to AI and accelerated computing,” he said.

“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”.

The buyback announcement follows Nvidia’s fiscal second-quarter results, reported in August, which showed revenue of $96.2 billion, up 106% from a year earlier.

Data center revenue reached $89 billion for the quarter, climbing 117% year over year. The company ended the July quarter with $22.44 billion in cash and cash equivalents.

Nvidia has forecast approximately 70% revenue growth for fiscal 2028, reassuring investors who have questioned the durability of the AI spending surge.

Combined hyperscaler capital expenditure is projected to exceed $1.3 trillion by 2027, according to S&P Global Ratings, as companies race to build AI infrastructure including data centers.

The buyback increase follows an $80 billion expansion of the program in May, when Nvidia also raised its quarterly dividend to $0.25 per share from $0.01.

During the second quarter, Nvidia returned approximately $26 billion to shareholders through repurchases and dividends.

The company has faced some scrutiny over its investments in AI startups and cloud providers, with critics questioning whether such funding indirectly supports demand for its own chips.

Huang has defended the strategy, describing it as supporting “extraordinary companies as they’re becoming profitable”.

The $235 billion authorization represents roughly 4% of Nvidia’s market capitalization.