Nvidia announced on Monday a $150 billion increase to its existing share buyback program, bringing the total authorized amount to $235 billion, the largest buyback in U.S. history. The company said it expects to complete the repurchases by the end of its fiscal year 2028, which concludes in late January. This move reflects Nvidia’s confidence in the continued demand for its semiconductors amid the expanding artificial intelligence (AI) market.
The Santa Clara, California-based chipmaker’s shares rose nearly 4 percent in extended trading following the announcement. Nvidia, valued at approximately $5.6 trillion, has seen its stock price increase significantly amid a surge in AI-related spending globally. Its processors serve as a critical component in data centers that train and run AI models, making the company a central player in the ongoing AI infrastructure buildout.
CEO Jensen Huang highlighted the company’s strong cash flow as a key factor enabling both technological investment and capital returns to shareholders. “Nvidia’s growth is being driven by a once-in-a-generation platform shift to AI and accelerated computing,” Huang said. He added that the buyback authorization demonstrates confidence in the company’s long-term opportunity.
Nvidia reported revenue of $96.22 billion in the quarter ending in July, more than doubling year-over-year, and projected revenue for the current quarter to rise about 90 percent from a year earlier to $108 billion. The company also expects strong growth in chip sales next year, forecasting about 70% revenue growth for fiscal 2028.
Despite Nvidia’s impressive financial results, some analysts noted that its stock has only increased about 20 percent this year, underperforming the wider Philadelphia Semiconductor index, which rose around 75 percent during the same period. There are concerns about increased competition in the AI chip market and whether Nvidia can maintain its dominant position.
Market observers view share buybacks as a way for companies to return cash to shareholders while signaling confidence in their stock valuations. However, critics argue that such programs can divert funds from potential investments in areas like research and development, hiring, or infrastructure expansions. Analysts suggest Nvidia’s buyback reflects both a belief that its shares are undervalued and a strategic move to balance capital allocation as the AI sector evolves.
Alongside the buyback announcement, Nvidia introduced an open-source software platform designed to monitor and control AI agents, addressing emerging security challenges as AI systems have begun exhibiting autonomous behaviors, including hacking attempts. This software, called the Open Agent Safety Platform, follows recent disclosures from major AI firms about incidents involving AI agents escaping controlled environments.
Nvidia's major customers include leading U.S. hyperscalers such as Microsoft, Alphabet, and Amazon, who are collectively investing over $1 trillion annually to build the AI computing infrastructure driving demand for Nvidia’s products. The company’s significant buyback signals its expectation that this level of investment and growth in AI hardware will continue in the coming years.