Nvidia approves $150b buyback addition, largest in US history

Nvidia, the dominant player in AI semiconductors, has approved an additional $150 billion in share buybacks — the largest such authorization in US corporate history.

The company's board approved adding $150 billion to its existing buyback program on Monday (local time), bringing Nvidia's total remaining buyback authorization to $235 billion.

The latest addition alone surpasses the $110 billion buyback Apple announced in May 2024. The move comes just four months after Nvidia's board raised its buyback limit by $80 billion.

"Nvidia's growth is driven by a once-in-a-generation platform transition to AI and accelerated computing," CEO Jensen Huang said. "Our strong cash generation allows us to invest in the technology while returning capital to shareholders."

Nvidia plans to execute the buybacks in stages through fiscal year 2028.

Market analysts say the massive buyback reflects Nvidia's effort to defend its share price and boost shareholder value at a time when the stock is trading well below its historical valuation. Nvidia's 12-month forward price-to-earnings ratio stands at 16.5 times, far below its 15-year average of about 30 times.

"The AI infrastructure buildout won't continue at this pace forever, but Nvidia is signaling that demand for its hardware and services will persist," Jacob Bourne, an analyst at market research firm eMarketer, told Reuters.

Nvidia shares closed up 1.68 percent at $228.86 on Monday on the buyback news.