Nvidia Announces Record USD 150 Billion Increase in Share Buybacks

Nvidia's board has approved an additional USD 150 billion for share buybacks, taking the chipmaker's total stock repurchase authorisation to USD 235 billion, as the company seeks to deploy cash generated by strong demand for its artificial intelligence chips.

The Santa Clara, California-based company said the latest increase, which it described as its largest-ever share buyback authorisation, is expected to be executed through its fiscal year ending January 30, 2028.

Companies typically use share repurchases to return capital to investors and can also support their stock price by reducing the number of shares in circulation. A lower share count can, in turn, boost earnings per share.

Nvidia founder and CEO Jensen Huang said the company's growth was being driven by a major shift towards AI and accelerated computing. He said Nvidia's strong cash generation provides the company with the capacity to invest in technologies supporting the transformation while also returning capital to shareholders.

Shares of Nvidia rose 2.3 per cent in morning trading on Monday. The stock has gained about 24 per cent so far this year, reflecting continued investor interest in the company's position at the centre of the AI boom.

Nvidia's high-end processors have become key components for developing and running advanced AI systems, driving substantial demand for its products. The company reported USD 59.69 billion in quarterly profit late last month.

The buyback announcement comes as the AI industry faces growing scrutiny over the enormous investments being made in the technology. While AI has contributed to stock market gains and US economic growth, concerns remain about whether the sector will generate returns sufficient to justify the trillions of dollars being invested.

The rapid expansion of AI infrastructure has also drawn objections over rising data-centre requirements and concerns that widespread adoption could result in significant job losses globally.