Nvidia Approves Record $150B Buyback, Boosting Total Repurchase to $235B

Key points

• Nvidia’s board approved a $150 billion increase to its share repurchase program, making it the largest authorization increase in corporate history.
• The total remaining authorized buyback amount now stands at $235 billion, with execution planned through fiscal year 2028.
• Nvidia’s stock rose in early trading following the announcement, which also included the launch of the Open Agent Safety Platform.
• CEO Jensen Huang stated that the company’s strong cash generation allows it to fund AI investments while returning capital to shareholders.
• Nvidia’s trailing price-to-earnings ratio is approximately 30, its lowest in four years, despite analyst predictions of nearly doubling earnings per share this fiscal year.

Background

Nvidia has aggressively deployed cash for buybacks since 2025, repurchasing $34 billion in fiscal 2025 and over $40.4 billion in fiscal 2026. In the first half of fiscal 2027, the company bought back $39 billion. This latest move follows a $80 billion increase authorized four months prior. The company’s market capitalization exceeds $5.5 trillion, making it $500 billion more valuable than Apple, the next-largest company. The buyback coincides with the launch of the Open Agent Safety Platform, designed to secure AI agents from testing to deployment.

How outlets are covering it

Yahoo Finance and The New York Times both highlight the historic scale of the buyback and the signal it sends regarding management’s view of the stock’s valuation. Yahoo Finance notes that D.A. Davidson’s Gil Luria views the move as a sign that CEO Jensen Huang sees the stock as cheap, given the company’s massive cash flow. The New York Times emphasizes the context of the AI platform shift, quoting Huang’s statement that growth is driven by a 'once-in-a-generation' change. Yahoo Finance’s personal finance section notes that former analyst David Bennett views the buyback as a response to market questions about the AI boom’s duration, highlighting that Nvidia generated $74.4 billion in operating cash flow in the first half of fiscal 2027. The New York Times and Yahoo Finance agree on the total $235 billion authorization but differ slightly in emphasis: The Times focuses on the historical precedent, while Yahoo Finance focuses on the implications for shareholders and potential investors, noting the stock’s low forward P/E multiple of 18.7x.

Why it matters

The $150 billion buyback demonstrates Nvidia’s ability to fund aggressive AI infrastructure investments while simultaneously returning capital to shareholders, a capability few other tech giants possess. The move signals strong management confidence in the company’s long-term growth trajectory, despite the stock trading at a valuation multiple that is historically low for Nvidia. This could influence investor sentiment and potentially alter the stock’s upward trajectory, especially in a market where tech giants are absorbing pressure from rising Treasury yields. The simultaneous launch of the Open Agent Safety Platform also positions Nvidia as a key provider of infrastructure for safe AI deployment, addressing security concerns in the rapidly evolving AI landscape.

What to watch

Nvidia expects to execute the total $235 billion buyback program through fiscal year 2028. The company is scheduled to announce third-quarter earnings results on November 17. Investors will watch how the buyback impacts earnings per share and whether the company can continue to fund AI expansion while returning capital. The market will also assess the reception of the Open Agent Safety Platform and its potential impact on Nvidia’s role in AI infrastructure.