Nvidia will add $150 billion to its stock buyback program, bringing the total remaining authorized amount to a record $235 billion. The increase comes four months after the chipmaker’s board added $80 billion to the company’s buyback program.
“Nvidia’s growth is being driven by a once-in-a-generation platform shift to A.I. and accelerated computing,” Jensen Huang, Nvidia’s chief executive, said in a statement. “Our cash generation gives us the capacity to invest in the technologies that advance this transformation and return capital to shareholders,” he added. “This authorization reflects our confidence in the long-term opportunity ahead.”
The buyback follows a company report last month that its revenue more than doubled, to $96.22 billion, for the quarter that ended in July. Just three years ago, Nvidia’s quarterly profit was $6.2 billion. Other companies have been buying tens of billions of dollars’ worth of those chips, making Nvidia the most valuable public company in the world, with a market capitalization of about $5.6 trillion. In addition, CEO Jensen Huang earlier this month said Nvidia would double the number of chips it sells in 2027, perhaps fueling the company and its stock even higher. Combined hyperscaler capital expenditure is projected to exceed $1.3 trillion by 2027, S&P Global Ratings said in August, as companies race to build AI infrastructure including data centers.
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Nvidia (NVDA) has climbed 24% over the past 12 months, lifting the company’s market cap to $5.42 trillion. The stock responded well to the stock buyback update, rising 1.8% in early trading. Despite the broader tech sector dipping, Nvidia continues to lead the way thanks to the AI boom. As a result, chip rivals such as AMD and Intel also rose a few points after the announcement.