Nvidia Board Approves Record $150B Buyback Expansion, Totaling $235B

Key points

• Nvidia's board authorized an additional $150 billion for share repurchases, raising the total remaining program to $235 billion.
• The company plans to execute the full $235 billion buyback program through fiscal year 2028.
• CEO Jensen Huang stated that cash generation from AI and accelerated computing allows Nvidia to invest in technology and return capital to shareholders.
• Jim Cramer suggested the buyback could fundamentally alter Nvidia's stock trajectory, despite broader market pressures from high Treasury yields.
• The move follows a previous $80 billion increase four months earlier, reflecting management confidence in AI-driven growth.

Background

Nvidia's stock has faced pressure from surging Treasury yields, with the 10-year yield above 5%, a 19-year high. However, the Nasdaq-100 rose 3.25% for the week, driven by 'Magnificent Seven' tech stocks. Nvidia's forward P/E multiple has fallen to 24x, approaching the S&P 500 average, despite rapid earnings growth. Earlier in 2026, Nvidia reported mixed Q2 results with revenue of $96 billion and EPS of $2.46, but free cash flow fell to $21.3 billion and margins dropped 38 percentage points to 22%.

How outlets are covering it

Nvidia's official press release emphasizes the company's confidence in long-term AI opportunities and its capacity to return capital to shareholders. Jim Cramer, via Yahoo Finance, focuses on the potential impact of the buyback on the stock's upward trajectory, contrasting it with broader market pressures from high yields. The archive notes that while the buyback is a record, Nvidia's valuation multiple has fallen, and margins have strained due to memory costs and AI-chip competition.

Why it matters

The $150 billion buyback expansion signals strong confidence in Nvidia's cash flow from AI-driven growth, potentially supporting its stock price despite high interest rates. It also highlights the company's strategy to return capital to shareholders while investing in AI technologies, which could influence investor sentiment and market dynamics in the tech sector.

What to watch

Nvidia is expected to execute the $235 billion buyback program through fiscal year 2028. Investors will watch how the buyback impacts the stock price and whether it can offset broader market pressures from high Treasury yields. Further developments in AI technology and competition may also influence Nvidia's future performance.