Nvidia announced Monday that it had authorized an additional $150 billion for its stock buyback program, bringing its total to $235 billion, amid record AI spending.
The chip giant said it was the largest increase in stock repurchase authorizations in history. It plans to complete the remaining total repurchase program through fiscal 2028.
Nvidia produces the most advanced chips used for AI and has been a big beneficiary of the boom in infrastructure spending needed to power the technology.
NVIDIA Stock
Nvidia shares have soared 24% over the past 12 months, bringing the company’s market capitalization to $5.42 trillion. The stock was up 1.24% Monday in pre-market trading.
“NVIDIA’s growth is driven by a once-in-a-generation platform shift toward AI and accelerated computing,” CEO Jensen Huang said in a statement.
“Our cash generation gives us the ability to invest in technologies that advance this transformation and return capital to shareholders,” he added. “This authorization reflects our confidence in the long-term opportunities that lie ahead.”
Combined capital spending by hyperscalers is expected to exceed $1.3 trillion by 2027, S&P Global Ratings said in August, as companies race to build AI infrastructure, including data centers.
Huang said earlier this month that Nvidia would double the number of chips sold in 2027.
In addition to making the main chips for AI – graphics processing units – including its Grace Blackwell and Vera Rubin systems, the company makes a variety of additional semiconductors. This includes central processors, or CPUs, switch chips, chips for optical networks, chips for laptops, Jetson chips for robots and cars, and the chip built into Nintendo’s Switch 2 game console.
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