Nvidia increases share buyback by record amount
The chip company is reserving another 150 billion dollars for its own shares.
Nvidia is increasing its authorisation to buy back its own shares by 150 billion dollars. The remaining programme will therefore amount to 235 billion dollars, the company announced on Monday.
Nvidia's board approved an additional authorisation of 150 billion dollars on Monday. The company expects to use the remaining amount through fiscal 2028. This is an authorisation: Nvidia does not have to spend the full amount.
According to Nvidia, this is the largest increase to a share buyback programme to date. Reuters compared the increase with the additional authorisation of 110 billion dollars that Apple announced in 2024.
In a share buyback, a company purchases its own shares on the stock market. This can reduce the number of shares outstanding. If profits remain unchanged, earnings per share can rise. The measure in itself says nothing about the future share price and is no guarantee of higher returns for investors.
Nvidia links the decision to strong demand for chips used in artificial intelligence. Chief executive Jensen Huang writes in the press release that cash flow provides room for investment and for returning capital to shareholders.
Reuters reported that Nvidia had 22.44 billion dollars in cash and cash equivalents at the end of July. The share had risen by more than 20 per cent in 2026 through Friday. At the same time, investors are wondering how long strong spending on AI infrastructure can continue.
The new announcement comes on top of earlier buybacks. According to Nvidia's latest quarterly report, the company bought back 19.7 billion dollars' worth of shares in the second quarter of fiscal 2027; in the first half of that fiscal year, the figure was 39.8 billion dollars.
The size of the programme is therefore primarily a signal about the financial room Nvidia says it has. Whether demand for AI remains strong enough to justify that room depends on customers' investment plans, competition and developments in the chip market.
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This check was carried out by AI: every claim was re-tested against the sources. Even an approved article can contain errors — stay critical.
The key figures were checked directly against Nvidia and Reuters. The context on earlier buybacks comes from Nvidia's SEC filings; interpretations concerning the share price and AI demand are expressed as uncertainties.
- confirmed Nvidia increased its authorisation for share buybacks by 150 billion dollars. — Mentioned in Nvidia's press release. source
- confirmed The remaining programme amounts to 235 billion dollars and is expected to run until fiscal 2028. — Mentioned by Nvidia and Reuters. source
- confirmed The increase is larger than Apple's increase of 110 billion dollars in 2024. — Reuters makes this comparison. source
- confirmed Nvidia bought back 19.7 billion dollars' worth of shares in the second quarter of fiscal 2027. — Included in Nvidia's quarterly report filed with the SEC. source
- confirmed Nvidia had 22.44 billion dollars in cash and cash equivalents at the end of July. — Reported by Reuters. source
Editor's note
The new authorisation, the remaining amount and the planned duration are certain. The effects on the share price and the sustainability of AI demand are uncertain.Sources
- NVIDIA Announces a $150 Billion Share Repurchase Authorization Increase — NVIDIA via GlobeNewswire
- Nvidia boosts share buyback by record $150 billion as AI boom fuels growth — Reuters via Investing.com
- NVIDIA Form 10-Q — U.S. Securities and Exchange Commission