Nvidia disclosed on Monday a new stock repurchase program that adds $150 billion to its existing authorization, taking the total amount the company can buy back to $235 billion through 2028. The announcement coincided with the launch of the Open Agent Safety Platform, an open‑source software suite intended to improve security for third‑party systems that deploy AI agents. The buyback news lifted Nvidia’s share price on the day of the announcement.
Scale of the buyback and recent repurchase activity
The latest authorization marks the largest single buyback commitment in corporate history, according to the company’s filing. Nvidia has been aggressively using cash to repurchase shares since fiscal year 2025, a pace that dwarfs similar programs at other technology giants such as Apple, Alphabet and Meta. In fiscal 2025 the company bought back roughly $34 billion of its common stock. That figure rose to more than $40.4 billion in fiscal 2026, and in the first half of fiscal 2027—covering the period through July 2026—Nvidia repurchased $39 billion worth of shares.
What the buyback means for shareholders
Analysts note that the ongoing, large‑scale repurchase is likely to lift earnings per share by reducing the number of shares outstanding. Former Wall Street analyst David Bennett wrote on X.com that when market participants began questioning the durability of the AI boom, “Nvidia didn’t talk. It wrote a check.” He highlighted that Nvidia trades at about 18.7 times forward earnings, a multiple he described as cheaper than most S&P 500 companies. Bennett added that the company does not have to choose between growth initiatives and shareholder returns.
Supporting that view, Bennett cited Nvidia’s operating cash flow of $74.4 billion generated in the first half of fiscal 2027, alongside a $46.1 billion return to shareholders during the same period. He argued that the firm’s cash generation gives it the “luxury” to fund AI expansion while simultaneously buying back stock—a flexibility most companies lack.
Implications for potential investors
Potential investors may find the buyback attractive because it signals confidence from management while underscoring the company’s strong free cash flow despite heavy AI investment. Yahoo Finance executive editor Brian Sozzi, speaking on the “Sozzi Unleashed” podcast, described CEO Jensen Huang’s move as a “mind‑blowing” statement of confidence. Sozzi interpreted the $150 billion allocation as Huang’s response to what he perceives as a low valuation for the stock, noting that Nvidia’s price‑to‑earnings ratio has fallen as the company continues to dominate AI chip markets.
Sozzi added that he is not surprised by the decision, suggesting that Huang is “frustrated with the valuation of his company” and wants to send a clear signal to the market. The CEO’s own remarks framed the buyback as a reflection of a “once‑in‑a‑generation platform shift to AI and accelerated computing,” emphasizing that the firm’s cash generation enables both continued technology investment and capital returns to shareholders.
With a market capitalization exceeding $5.4 trillion—making it the world’s largest company—Nvidia’s expanded buyback underscores its financial strength and its leadership in the AI hardware space. The $150 billion repurchase, together with the broader $235 billion authorization, positions the company to potentially enhance shareholder value while financing the next phase of AI‑driven growth.
Mitchell Landsberg is a Senior Technology Correspondent at News Raise. He covers consumer electronics, artificial intelligence, software developments, and digital privacy trends.
