Nvidia Expands Buyback Program to $235 Billion Amid AI Infrastructure Boom

Key points

• Nvidia increased its share buyback authorization by $150 billion, reaching a total of $235 billion.
• The company described this as the largest share repurchase authorization increase in history.
• Nvidia plans to complete the remaining buybacks through fiscal 2028.
• CEO Jensen Huang attributed the move to strong cash generation from the AI platform shift.
• Nvidia’s stock has risen 24% in the last 12 months, valuing the company at $5.42 trillion.
• Hyperscaler capital expenditure is projected to exceed $1.3 trillion by 2027.

Background

Nvidia recently reported Q2 FY27 revenue of $96.2 billion, up 106% year over year, driven by data center demand. The company has also expanded its equity portfolio to $99 billion and proposed a $500 billion financing framework for AI infrastructure. Analysts have debated valuation risks, with some suggesting the stock may be undervalued relative to free cash flow despite concerns over AI demand sustainability.

Why it matters

The massive buyback signal reinforces Nvidia’s confidence in sustained AI infrastructure spending. With hyperscaler capital expenditure projected to surpass $1.3 trillion by 2027, Nvidia’s cash flow strength supports both shareholder returns and continued investment in advanced chip technologies like Grace Blackwell and Vera Rubin.

What to watch

Nvidia expects to execute the remaining buybacks through fiscal 2028. The company also plans to double chip sales in 2027, leveraging its diverse semiconductor portfolio including CPUs, networking chips, and robotics components. Continued growth in AI infrastructure spending will likely drive further capital return initiatives.