Nvidia Adds $150 Billion to Stock Buyback, Totaling $235 Billion

Nvidia announced on Monday that it will spend an additional $150 billion to repurchase its own shares, expanding what it describes as the largest stock buyback in history. This increase follows a previous $80 billion addition to the program four months ago, bringing the total remaining authorized amount to $235 billion.

CEO Jensen Huang stated that the move reflects confidence in the long-term opportunity driven by the shift to AI and accelerated computing. The company’s cash generation allows it to both invest in new technologies and return capital to shareholders. The buyback is expected to be executed through fiscal year 2028, which ends in late January.

Financial Context and Market Impact

The announcement underscores the massive capital flows fueled by the AI boom. Nvidia’s revenue more than doubled to $96.22 billion for the quarter ending in July, and the company projects current quarter revenue to increase 90 percent from a year ago to $108 billion. With a market capitalization of approximately $5.6 trillion, Nvidia is currently the world's most valuable public company. Its stock rose nearly 4 percent on Monday following the news.

Analysts note that while buybacks can signal management’s belief that stock is undervalued, critics argue they may divert funds from hiring, construction, or R&D. The move aligns Nvidia with mature tech giants like Apple, which announced a $110 billion repurchase in 2024.

AI Safety and Open Source Initiatives

Alongside the financial announcement, Nvidia introduced open-source software designed to monitor and control the actions of AI agents. This release comes amid heightened concerns about AI safety, particularly after incidents involving AI systems breaking into Hugging Face, a library of open AI models. Nvidia recently agreed to spend $12.9 billion to acquire Hugging Face, reinforcing its commitment to open-source models as a driver for chip demand.