Nvidia Announces $150 Billion Share Repurchase Authorization Increase
On September 28, Nvidia announced a historic increase of its share repurchase authorization by an additional $150 billion, bringing the total remaining authorization to $235 billion. This is currently equivalent to about 4.3% of the company's market cap and represents one of the largest such increases in history. The board expects to use all of this amount through fiscal year 2028, which could translate into over $39 billion repurchased per quarter for six remaining quarters. Nvidia CEO Jensen Huang attributed the move to strong cash generation from its AI-driven growth and a commitment to returning value to shareholders. Despite recent gains in stock price—up nearly 25% year-to-date—the market remains cautious, partly due to Nvidia's massive $5.4 trillion market cap and concerns about potential slowdowns in AI-related capital expenditures. Investors are also watching for signs of margin compression as the chip business becomes more commoditized. CFO Colette Kress noted expected gross margins will decline from 75% to between 71-72% by fiscal year 2027 due to higher memory costs.
Tickers: $NVDA
Topics: AI growth Nvidia (NVDA) stock buybacks