Nvidia sets biggest-ever buyback plan as AI chip competition weighs on stock performance
Nvidia boosts its remaining buyback capacity to US$235 billion, which it expects to deploy through fiscal 2028
Nvidia has announced its biggest-ever share buyback plan, authorising a record US$150 billion, surpassing Apple's US$110 billion approval in 2024. This move is expected to fund the company's remaining buyback capacity of US$235 billion through fiscal 2028, as the AI chip competition weighs on its stock performance relative to peers.
Nvidia's stock, which rose over 20% in 2026, is now trading at a valuation of 16.5 times 12-month forward earnings, the lowest since January 2015. Nvidia CEO Jensen Huang stated that the company's strong cash generation allows it to continue investing heavily in the business while returning capital to shareholders. Analysts see the buyback as a sign of confidence in Nvidia's hardware and services demand, despite the uncertainty surrounding the sustainability of the AI spending boom.
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