Nvidia sets biggest-ever buyback plan as AI chip competition weighs on stock performance

Nvidia has announced a record $150 billion share buyback plan, surpassing Apple's $110 billion approval in 2024. This move comes as competitive AI-chip market conditions weigh on Nvidia's stock performance, which has outperformed peers like AMD and Intel this year. The company is confident in its cash generation and investment capabilities to continue returning capital to shareholders while expanding its business.

Nvidia's lower valuation multiple compared to its 15-year average suggests investors have tempered their expectations for profit growth. CEO Jensen Huang believes the company's strong cash flow can support both its expansion and shareholder returns.