Nvidia Approves Record $150 Billion Buyback

Nvidia has approved a record $150 billion buyback, the largest in U.S. corporate history, as the AI semiconductor market leader seeks to return capital to shareholders. This brings its total share repurchase authorization to $235 billion, highlighting its commitment among global big tech companies. The new authorization was approved by the company's board on September 28, surpassing Apple's $110 billion buyback announcement from May. Nvidia plans to implement the program in phases through fiscal 2028.

Powered by strong cash generation from surging demand for AI data centers, Nvidia's revenue in the second quarter of fiscal 2027 reached $96.2 billion, a 106% increase from a year earlier. CEO Jensen Huang stated, "With our strong cash generation, we can invest in the technologies that matter while returning capital to shareholders," expressing confidence in long-term growth.

The move is seen as a strategic effort to address potential undervaluation and boost earnings per share, with analysts predicting enhanced shareholder value.

Nvidia's decision echoes a trend across the global semiconductor industry, with Micron raising its quarterly dividend by 30% and repurchasing shares, while South Korean companies Samsung Electronics and SK hynix are also repurchasing significant portions of their shares. Despite these aggressive shareholder return measures, South Korean semiconductor stocks remain below their recent highs, trading 24.8% and 40.9% below their 52-week highs respectively.

Analysts note that while AI semiconductor demand boosts confidence, sustained share price recovery will depend on broader market confidence.