Chipmaking giant Nvidia announced a record $150 billion share buyback programme, raising its total repurchase authorisation to $235 billion, as the chipmaker continues to ride robust demand for artificial intelligence infrastructure.
The latest approval marks the largest increase in a US corporate share repurchase programme, surpassing Apple’s $110 billion buyback authorisation announced in 2024.
“Nvidia’s Board of Directors authorized a massive $150 billion increase to its share repurchase program, bringing its total remaining buyback firepower to $235 billion through fiscal 2028. This stands as the largest share buyback authorization in corporate history, superseding previous records,” said Avinash Gorakshakar, Founder & Head Research at Avinash Mentor Research.
A share buyback occurs when a company uses its surplus cash to repurchase its own shares from the market. By reducing the number of outstanding shares, the move can boost earnings per share (EPS) and provide a way for companies to return capital to shareholders.
Nvidia expands share buyback program
In the official announcement, the company further informed that it expects to execute the total remaining program through fiscal year 2028.
“NVIDIA’s growth is being driven by a once-in-a-generation platform shift to AI and accelerated computing,” said Jensen Huang, founder and CEO of NVIDIA. “Our cash generation gives us the capacity to invest in the technologies that advance this transformation and return capital to shareholders. This authorization reflects our confidence in the long-term opportunity ahead.”
Meanwhile, Daniel Munday, Principal Analyst, VT Markets, highlighted a very important aspect that this isn’t a tender offer in the traditional sense; nobody’s being asked to sell shares back at a set price. It’s open market buying, and Nvidia doing it at this scale signals that management sees the stock as attractively valued even after a 24% run over the past year.
Munday added that a buyback of this size shrinks the float and mechanically lifts Earnings Per Share (EPS), regardless of what happens with the underlying business, on top of the AI demand story that’s still driving actual revenue growth.
Should investors tender the offer?
According to Viram Shah, Founder and CEO, Vested, investors should remember that an authorisation is not an obligation, and part of any tech buyback offsets employee share issuance.
“ For Indian investors, buybacks also defer tax until sale, unlike dividends, which face 25% US withholding. Overall exposure to the AI theme matters more than any single corporate action,” Shah added.
Shah further explained that using the full amount on time means roughly doubling the rate of buybacks from the first half of this year, which assumes cash flows keep growing. It signals management’s confidence in AI demand, backed by $74.4 billion of operating cash in six months.
Meanwhile, Gorakshakar recommended investors with substantial holdings may consider participating in the buyback, while the company’s long-term growth trajectory remains strong, with healthy prospects for sustained growth going forward.
On the other hand, Munday said that the bigger factor for investors to watch isn’t the buyback itself; it’s the valuation. “At a $5.4 trillion market cap, any miss on capex guidance or a softer-than-expected quarter would likely draw a sharper reaction than usual given how much growth is already priced in,” he added.
Disclaimer: This story is for educational purposes only. The views and recommendations above are those of individual analysts or broking companies, not Mint. We advise investors to check with certified experts before making any investment decisions.
