Nvidia announced another share repurchase on Monday, increasing common stock repurchase by a record $150 billion and bringing total repurchase authorization to $235 billion through 2028.
The company has aggressively deployed cash to buy back its shares since 2025, far eclipsing similar efforts by other tech giants, including Apple (AAPL), Alphabet (GOOGL) (GOOG), and Meta (META).
In fiscal 2025, Nvidia repurchased approximately $34 billion in stock. In fiscal 2026, buybacks climbed to more than $40.4 billion. Then, during the first half of fiscal 2027, which ended in July 2026, the company repurchased $39 billion in stock.
NVIDIA shares (NVDA) rose on Monday following the buyout announcement, as well as the announcement of its Open Agent Safety Platform, an open software platform aimed at improving the security of third-party systems deploying AI agents.
Here’s what the buyout news means for shareholders and potential investors.
Learn more: Nvidia Announces $150 Billion Stock Buyback, Largest Single Authorization in History
What the Nvidia buyout means for shareholders
For existing Nvidia shareholders, the massive, ongoing buyback will increase earnings per share by reducing the number of shares outstanding.
Former Wall Street analyst David Bennett wrote on X.com that “when the market started asking ‘how long can the AI boom last?’ Nvidia has not spoken. He wrote a check.”
He noted that Nvidia already trades at nearly 18.7 times forward earnings.
“Management is buying back its own shares at a price several times cheaper than most S&P 500 companies,” Bennett added. And he says the company doesn’t have to choose between growth and performance.
“Nvidia generated $74.4 billion in operating cash flow in the first half of fiscal 2027 alone, and still returned $46.1 billion to shareholders. It can fund AI development and buy back stock. That’s a luxury most companies don’t have,” Bennett said.
Related: Customize your investment view with AlphaSpace
What the Nvidia buyout means for potential investors
Investors considering buying Nvidia stock might be attracted by the free cash flow the company has generated despite huge investments in AI.
In “Sozzi Unleashed,” Brian Sozzi, senior editor at Yahoo Finance, said Nvidia CEO Jensen Huang issued a “staggering” statement of confidence in the market and investors.
“I think it was Jensen saying, ‘I’m tired of trading my stocks at (such low) valuations.’ Nvidia’s PE ratio has fallen as the company has crushed it. He knows he is the leader in AI chips. And now he’s putting $150 billion to work and sending a signal of confidence to investors,” Sozzi said.
“I’m not surprised to see Jensen doing this. I think he’s frustrated with the valuation of his company, as he should be, because it doesn’t make a lot of sense to me,” he added.
A “generational shift towards AI”
Nvidia has a market capitalization of over $5.4 trillion, the largest in the world.
“Nvidia’s growth is driven by a once-in-a-generation platform shift toward AI and accelerated computing,” Nvidia CEO Huang said in a statement announcing the $150 billion stock buyback. “Our cash generation gives us the ability to invest in technologies that advance this transformation and return capital to shareholders. This authorization reflects our confidence in the long-term opportunities that lie ahead.
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