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Nvidia is launching the largest share buyback ever by a US company with a $150 billion buyback program, as the Silicon Valley chipmaker continues to reap huge profits from its position at the top of the AI supply chain.
The world’s most valuable company announced Monday that its board of directors had approved a $150 billion increase in its buyback program. This figure surpasses Apple’s record of $110 billion, set in 2024, which is the largest figure in the history of a US company.
Nvidia is now allowed to spend up to $235 billion on share buybacks before January 2028.
Nvidia’s profits are growing as the tech industry continues to invest huge sums in AI infrastructure, with Goldman Sachs forecasting that investments in AI will exceed $1 trillion this year. Its chips are the workhorses of the large language models that power ChatGPT, Claude and Gemini.
The company’s shares have risen more than 1,200% since OpenAI launched ChatGPT in late 2022. But the stock’s extraordinary momentum has slowed in 2026, rising about 20% in the year to date, as more investors question the sustainability of the AI boom.
Nvidia shares rose 1.4 percent Monday in pre-market trading.
Jensen Huang, co-founder and chief executive of Nvidia, said Monday that his new plan reflects “confidence in the long-term opportunities” offered by AI.
“Nvidia’s growth is driven by a once-in-a-generation platform shift toward AI and accelerated computing,” Huang said. “Our cash generation gives us the ability to invest in technologies that advance this transformation and return capital to shareholders. »
Large repurchase authorizations often indicate that a company’s management believes its shares are undervalued. But high returns on capital are generally associated with slower growth for large, established companies.
When Apple announced its $110 billion buyout in 2024, the iPhone maker held the top five spots for the largest such approvals granted by a U.S. company, according to Bloomberg. At the time, iPhone growth was slowing, but Apple continued to reap huge profits from its dominance in the smartphone market.
In contrast, Nvidia’s sales continue to grow rapidly. Its revenue is expected to grow about 90 percent this year. Fierce competitors in the AI race, including OpenAI, Anthropic and SpaceX, are all huge customers. Even Google, which has its own line of AI chips, is a big buyer of Nvidia products through its cloud computing unit.
Nvidia generated nearly $100 billion in free cash flow during its most recent fiscal year ending in January. That figure is expected to more than triple to $329 billion in fiscal 2028, according to consensus estimates from S&P Global’s Visible Alpha.
The chipmaker’s net profit is expected to more than double to $245 billion in the current fiscal year, according to Visible Alpha, and reach $387 billion in the following fiscal year ending January 2028.
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