Nvidia boosts share buyback by record US$150bil as AI boom fuels growth
SAN FRANCISCO: Nvidia bolstered its share buyback authorization by US$150 billion, surpassing Apple's US$110 billion boost in 2024 to mark the biggest-ever increase in a stock repurchase program.
Nvidia has significantly increased its share buyback authorization by a record US$150 billion, surpassing Apple's US$110 billion boost in 2024. This makes the largest-ever increase in a stock repurchase program. The additional authorization brings Nvidia's remaining buyback capacity to US$235 billion, which it anticipates utilizing through fiscal 2028. This surge in demand for AI training and inference is driving cash generation for the company.
Nvidia's shares rose by 0.8 percent in premarket trading, following earlier gains of up to 1.8 percent. The company's stock has gained over 20 percent this year. Nvidia CEO Jensen Huang stated that the company's strong cash generation enables it to invest in advancing technologies and return capital to shareholders.
In July, Nvidia projected a substantial 70 percent revenue growth for fiscal 2028, reassuring investors who have questioned the longevity of the AI spending surge. Nvidia has also been investing in AI startups and cloud providers, which has drawn criticism from some investors who question whether this funding indirectly supports demand for the company's own chips.
As of the end of the July quarter, Nvidia had US$22.44 billion in cash and cash equivalents.
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- Nvidia boosts share buyback by record $150 billion as AI boom fuels growth channelnewsasia.com
