Nvidia Authorizes Record $150 Billion Stock Buyback Amid Strong Free Cash Flow Growth
Nvidia has authorized a record $150 billion in stock buybacks, increasing its total repurchase program to $235 billion. This is the largest single authorization of its kind in U.S. corporate history and highlights Nvidia's strong financial position. The move comes as the company continues to generate robust free cash flow (FCF), with 60% returned to investors through buybacks and dividends in fiscal 2027’s first half, under a long-term target of at least 50%. High margins—converting around 42 cents per dollar into FCF—are driven by strong demand for AI compute hardware. Beyond the buyback announcement, Nvidia is making significant strides with its product development pipeline. The company has launched three major platforms in four years and expects its latest offering, Vera Rubin, to account for 20% of data center revenue this quarter. Demand for Rubin is so high that it’s guiding for a 70% year-over-year growth rate in fiscal 2028. This innovation underscores Nvidia's leadership in the AI boom and reinforces its pricing power despite rising memory chip costs.
Topics: AI growth buybacks free cash flow Nvidia