Nvidia Announces Record $150 Billion Share Buyback
The chipmaker's total remaining repurchase authorization rises to $235 billion, backed by soaring profits even as it commits hundreds of billions of dollars to securing future AI infrastructure demand.
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Nvidia announced a record $150 billion increase to its share buyback program on Monday, 28 September, bringing its total remaining repurchase authorization to $235 billion as surging demand for artificial intelligence chips continues to generate substantial cash for the company.
The additional authorization, approved by Nvidia’s board, is the largest increase to a share repurchase program in history, according to the company. Nvidia expects to execute the remaining program through fiscal 2028.
“Our cash generation gives us the capacity to invest in the technologies that advance this transformation and return capital to shareholders,” founder and Chief Executive Jensen Huang said in the company’s announcement.
The decision follows an $80 billion increase approved in May, when Nvidia also raised its quarterly dividend from 1 cent to 25 cents per share. The company repurchased $39.8 billion worth of shares during the first six months of fiscal 2027, compared with $24.2 billion a year earlier.
Nvidia’s latest results explain its ability to fund such a large program. Revenue more than doubled to $96.2 billion in the quarter ended 26 July, while net income rose 126% to $59.7 billion. Its data center business, which supplies chips and computing systems to major cloud providers and AI developers, generated $89 billion in revenue, up 117% from a year earlier.
Operating cash flow reached $74.4 billion in the first half, up from $42.8 billion a year earlier, leaving Nvidia with substantial resources for shareholder returns. The company is also spending heavily to secure future chip supplies, disclosing $279 billion in supply and capacity commitments as of 26 July.
Those commitments reflect its expectations for continued AI infrastructure demand, although they also leave the company exposed if major customers scale back spending.
The company returned about $26 billion to shareholders through buybacks and dividends during the quarter. It had about $99 billion remaining under its previous repurchase authorization at the end of July.
Nvidia’s decision to expand the program comes as it continues to invest in new chips, computing systems and networking technology to meet demand from companies building and operating advanced AI models.
The company expects third-quarter revenue of about $108 billion, up from $96.2 billion in the preceding quarter, according to its August earnings guidance.
The new buyback authorization gives it flexibility to repurchase shares as cash becomes available, but does not require it to spend the full amount. The pace of purchases will depend on market conditions and the company’s investment requirements.
