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Nvidia increased its share buyback authorization by $150 billion, the largest ever, lifting remaining capacity to $235 billion. The AI chipmaker expects to use the funds through fiscal 2028 amid surging demand.
Nvidia bolstered its share buyback authorization by US$150 billion, surpassing Apple's $110 billion boost in 2024 to mark the biggest-ever increase in a stock repurchase program.
The additional authorization lifts Nvidia's remaining buyback capacity to $235 billion, which it expects to use through fiscal 2028, as surging demand for AI training and inference fuels cash generation. Shares of Santa Clara, California-based Nvidia were up 0.8 per cent in premarket trading after rising as much as 1.8 per cent earlier. The stock has gained more than 20 per cent this year through Friday's close.
CEO Jensen Huang Discusses Capital Return Plans
Our cash generation gives us the capacity to invest in the technologies that advance this transformation and return capital to shareholders, CEO Jensen Huang said. Last month, Nvidia forecast about 70 per cent revenue growth for fiscal 2028, reassuring investors who have questioned how long the AI spending surge can last after years of explosive growth.
The company has also been investing in AI startups and cloud providers, drawing scrutiny from some investors over whether such funding indirectly supports demand for its own chips. Nvidia ended the July quarter with $22.44 billion in cash and cash equivalents. The buyback increase underscores Nvidia's position at the center of the AI boom, as demand for its chips used in AI training and inference continues to drive strong cash flow.
The record authorization exceeds Apple's 2024 increase, which had previously been the largest. Nvidia's total remaining repurchase capacity now stands at $235 billion. The company plans to deploy the buyback funds through fiscal 2028, aligning with its expectation of continued revenue growth. Last month's forecast of about 70 per cent revenue growth for fiscal 2028 gave investors confidence.
Nvidia Addresses AI Spending Sustainability Concerns
Nvidia has faced questions about the sustainability of AI spending after years of rapid growth. Its investments in AI startups and cloud providers have raised concerns about whether that funding indirectly boosts demand for its own products. With $22.44 billion in cash and cash equivalents at the end of the July quarter, Nvidia maintains a strong balance sheet. The buyback program is seen as a way to return capital to shareholders while continuing to invest in advanced technologies.
The stock's performance reflects investor optimism, with shares up more than 20 per cent this year through Friday's close and gaining in premarket trading after the announcement.
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CTVNews:This story was compiled and edited by the HeadTopics newsroom and HT AI from the reports above.
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