Nvidia Board Approves Record $150 Billion Buyback, Totaling $235 Billion

Key points

• Nvidia's board authorized a $150 billion increase to its share repurchase program, raising the total remaining authorization to $235 billion.
• The company expects to execute the entire $235 billion program by fiscal year 2028.
• CEO Jensen Huang stated the buyback reflects confidence in the long-term AI platform shift and the company's cash generation capacity.
• Nvidia's forward price-to-earnings multiple has declined to 24x, compared to the S&P 500's 20x multiple, despite the company's status as one of America's fastest-growing firms.
• The announcement coincides with a broader market context where AI stocks faced volatility in August 2026, with Nvidia's market cap standing at $5.42 trillion after a 24% rise over the past year.

Background

This move follows Nvidia's August 2026 announcement of a $1 trillion revenue target by 2027 and a series of MOUs with financial institutions to finance AI infrastructure. In August 2026, AI-related stocks experienced a sell-off, pulling major indices away from record highs, with Nvidia and Micron leading declines due to investor caution over stretched valuations. The current buyback authorization comes amid a broader trend of large corporate buybacks, including announcements from Novonesis and SK Hynix in August 2026, as markets navigated mixed global signals and rising debt levels.

How outlets are covering it

Nvidia's official press release emphasizes the strategic rationale, framing the buyback as a reflection of confidence in the 'once-in-a-generation' AI platform shift and the company's ability to return capital to shareholders while investing in new technologies. Yahoo Finance's analysis focuses on the valuation angle, highlighting that Nvidia's forward P/E multiple has declined steadily since August 2024 and now stands at 24x, close to the S&P 500's 20x multiple, suggesting Huang sees the current stock price as undervalued relative to the company's growth trajectory. Both sources agree on the $150 billion figure and the $235 billion total, but differ in emphasis: Nvidia focuses on long-term opportunity, while Yahoo Finance focuses on the valuation disconnect and market timing.

Why it matters

The $150 billion buyback is the largest single authorization increase in history, signaling strong confidence from Nvidia's leadership in the sustainability of AI-driven cash flows. It may support the stock price by reducing share count and returning capital to shareholders, potentially offsetting concerns about stretched valuations that contributed to the August 2026 AI stock sell-off. The move also underscores Nvidia's position as a dominant force in AI infrastructure, with a market cap of $5.42 trillion and a trajectory toward $1 trillion in revenue by 2027, as previously announced by Huang.

What to watch

Nvidia expects to execute the full $235 billion buyback program through fiscal year 2028. The company will continue to report on its AI-driven growth and cash generation, with the next key milestone being the achievement of its $1 trillion revenue target by 2027. Market observers will watch how the buyback impacts Nvidia's stock price and whether it helps stabilize valuations amid ongoing concerns about AI hype and stretched multiples in the tech sector.