Total buyback authorization reaches $235 billion, surpassing Apple's record

Jensen Huang cites AI and accelerated computing as growth drivers

The Nvidia logo [Reuters]
The Nvidia logo [Reuters]

Nvidia, the dominant force in AI semiconductors, has approved an additional $150 billion in share buybacks — the largest single buyback authorization in US corporate history.

The company said Monday its board approved adding $150 billion to its existing buyback program.

The expansion brings Nvidia's total remaining buyback authorization to $235 billion (320 trillion won). The company said the latest addition marks the largest single increase to a buyback program in corporate history.

The $150 billion addition alone surpasses the $110 billion buyback program Apple announced in May 2024.

Nvidia's board had already raised the buyback limit by $80 billion just four months ago in May, and has now moved again with an even larger increase. The company plans to execute the remaining buyback program in stages through fiscal year 2028.

"Nvidia's growth is being driven by a once-in-a-generation platform transition to AI and accelerated computing," CEO Jensen Huang said. "Our strong cash generation allows us to invest in the technology while returning capital to shareholders at the same time."

Market observers say Nvidia moved to expand buybacks as its 12-month forward price-to-earnings ratio fell to just 16.5 times — a level many consider undervalued.

That figure means the current share price is roughly 16.5 times the company's projected net profit over the next year. Nvidia's average forward P/E over the past 15 years has been around 30 times.

The buyback is widely seen as a move to defend the share price and enhance shareholder value.

Jacob Bourne, an analyst at market research firm eMarketer, told Reuters that the move signals Nvidia believes demand for its hardware and services will hold up. "The AI infrastructure buildout won't continue at this pace forever, but Nvidia is sending a signal that demand for its hardware and services will persist," he said.

Nvidia's share price surged more than 3.6 percent intraday after the buyback announcement but gave back some of those gains, closing the regular session up 1.68 percent at $228.86.

Nvidia, which dominates the market for AI GPUs and data center semiconductors, currently holds a market capitalization of more than $5.5 trillion, making it the world's most valuable company.


mokiya@heraldcorp.com