Backed by solid evidence of confidence! Nvidia adds $150 billion to its buyback, setting a record for total authorized repurchases by a U.S. company

As it continues to reap massive profits from its top position in the AI supply chain, Nvidia announced an additional $150 billion stock buyback program, setting a record for the largest buyback in U.S. corporate history.
The company, which has the highest market value globally, said on Monday that its board of directors has approved an increase of $150 billion to its share repurchase program. Together with the existing plan, Nvidia currently has authorization to deploy up to $235 billion for stock buybacks by January 2028. Buoyed by the news, Nvidia’s share price rose more than 3% in early trading.
NVDA Nvidia
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09/28 08:44 (ET)
Nvidia co-founder and CEO Jensen Huang said in a statement on Monday that this new program reflects the company's confidence in “long-term opportunities in the AI space.” He emphasized that the platform transformation driven by AI and accelerated computing has brought business growth. Nvidia's strong ability to generate cash flow enables it to both invest to advance the technological transition and return capital to shareholders.
This massive buyback action comes at a time when the strong upward momentum in Nvidia’s stock price is showing signs of slowing. As more and more investors begin to question the sustainability of the AI hype, this record-breaking capital return not only directly addresses market concerns, but also highlights management’s high confidence in the monetization ability of its core business.
Refreshes the U.S. corporate capital return recordNvidia’s $150 billion authorization breaks the previous record set by Apple in 2024 for the largest U.S. corporate share buyback authorization—$110 billion. According to Bloomberg, when Apple announced the buyback, the iPhone maker secured the top five positions for the largest buyback authorization among U.S. corporations.
Typically, large-scale share buyback authorizations indicate that company management believes its stock is undervalued, but this often coincides with slower growth faced by large, mature enterprises. For example, when Apple set a buyback record, iPhone business growth was slowing, and it relied mainly on its dominance in the smartphone market for profits.
However, Nvidia’s trajectory sharply contrasts with that. The chipmaker’s sales are still rising rapidly, and it is expected that this year’s revenue will grow by about 90%. This suggests that even as Nvidia carries out massive shareholder returns, its fundamentals remain in a high-speed expansion phase.
AI infrastructure investment maintains strong demandNvidia’s surge in profits is fundamentally driven by the fact that the entire tech industry is still pouring massive capital into AI infrastructure. Goldman Sachs predicts that global investment in the AI sector this year will exceed $1 trillion.
As the compute power backbone that supports the operation of large language models such as ChatGPT, Claude, and Gemini, Nvidia’s chip products remain in short supply in the market. In the intense AI race, many companies—including OpenAI, Anthropic, and SpaceX—are its major customers. Even Google, which has its own in-house AI chip lineup, is an important buyer of Nvidia’s products in its cloud computing division.
Abundant cash flow supports long-term valuationStronger-than-expected financial data provided solid support for Nvidia's massive buyback. Based on consensus forecast figures from Visible Alpha, a unit of S&P Global, in the most recent fiscal year ending in January, Nvidia generated nearly $100 billion in free cash flow. It is expected that by fiscal 2028 this figure will more than double to $329 billion.
On net profit, according to Visible Alpha’s forecast, Nvidia’s net profit for the current fiscal year will double to $245 billion, and rise further to $387 billion in the next fiscal year ending January 2028.
In terms of performance in the secondary market, since OpenAI launched ChatGPT in late 2022, Nvidia's share price has cumulatively risen by more than 1,200%. However, in 2026, the company's astonishing rally has slowed somewhat, with gains of about 20% year-to-date. Against a backdrop of differing views on the sustainability of the AI boom, strong earnings expectations and abundant cash flow have become the core support for investors’ confidence in Nvidia.