NVDA stock rises 3% after Nvidia boost buyback by record $150 billion

Nvidia has announced a massive $150 billion increase to its share repurchase program. This marks the largest authorization increase in corporate history.

The move raises the company’s total remaining buyback authorization to $235 billion, which it expects to complete through fiscal year 2028.

The AI chip giant’s board approved the increase as CEO Jensen Huang expressed his confidence in the company’s continued growth.

Huang said: “NVIDIA’s growth is being driven by a once-in-a-generation platform shift to AI and accelerated computing. Our cash generation gives us the capacity to invest in the technologies that advance this transformation and return capital to shareholders.”

Following this, NVDA stock rose over 3%, trading around $232 per share.

The current market capitalization of the company is $5.42 trillion, with its shares rising by 24% within the last 12 months.

According to Huang, the shares are still undervalued given the quick growth of earnings at Nvidia. The forward P/E ratio is currently at 24 times compared to the 20-times ratio of the S&P 500, which is why the company repurchases its own shares "at bargain prices."

According to analysts, the joint capital expenditures on AI infrastructure among the hyperscalers are expected to be more than $1.3 trillion in 2027. Huang recently stated that Nvidia will double the number of chips it sells in 2027.