Nvidia adds US$150 billion to massive stock buyback, the largest ever
The increase comes four months after the chip giant added US$80 billion to its buyback program.
On September 28, semiconductor giant Nvidia announced a massive US$150 billion (S$191 billion) increase in its stock buyback program, making it the largest repurchase in history. This move reflects the company's confidence in the long-term opportunity presented by the global AI transformation. CEO Jensen Huang stated that Nvidia's cash generation capacity allows for significant investment in AI and accelerated computing technologies, while returning capital to shareholders.
The company's stock price has surged due to the surge in demand for its AI-focused chips, positioning Nvidia as the most valuable public company globally with a market capitalization of around US$5.6 trillion. Nvidia's stock buyback aims to remove excess cash and signal its confidence in the AI ecosystem, though critics argue that such actions may have a limited impact on the stock price and divert resources from other essential investments like hiring, construction, and research and development.
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