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Nvidia’s board has cleared the way for the company to spend $150 billion more in share buybacks as the chipmaking giant looks to make use of more of its stellar revenue growth fueled by demand for its high-end artificial intelligence chips.
Nvidia's board has cleared the way for the company to spend $150 billion more in share buybacks as the chipmaking giant looks to make use of more of its stellar revenue growth fueled by demand for its high-end The Santa Clara, California, company said Monday the share buyback increase, which it touted as the largest ever, brings its stock repurchase program to $235 billion.
Nvidia said it expects to"execute" the share buyback plan through its fiscal year that ends in Jan. 30, 2028. Companies use repurchases, in part, to return cash to investors and support the stock's price. Earnings per share can increase because there are fewer shares outstanding. Buybacks also signal confidence from leadership about a company's financial prospects.
"NVIDIA's growth is being driven by a once-in-a-generation platform shift to AI and accelerated computing," said Jensen Huang, Nvidia's founder and CEO. "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.
"Nvidia's high-end chips have emerged as the leading building blocks for AI, and are highly sought after. The company reported While AI has powered stock market gains and U.S. economic growth in recent years, there's been growing skepticism about whether AI will justify the trillions of dollars being spent to develop the technology.
The AI industry is also faces increasing pushback amid objections to the expansion of data centers and fears that the rapid speed of AI adoption could lead to widespread job losses worldwide. FILE - This is the NVIDIA logo on a gaming computer screen box at a Best Buy store in Pittsburgh on Monday, Jan. 23, 2023.
- The Associated Press FILE - Jensen Huang, president and CEO of Nvidia, poses for a portrait before a groundbreaking ceremony for an expansion of Coherent's manufacturing facility on Tuesday, June 16, 2026, in Sherman, Texas. - The Associated Press
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