Nvidia authorizes $150 billion stock buyback, raising total to $235 billion
Nvidia announced a $150 billion share repurchase program, the largest single authorization in history, bringing its total buyback capacity to $235 billion.
Nvidia disclosed on Monday a $150 billion stock buyback plan, the biggest share-repurchase authorization ever recorded, increasing the company’s total buyback authorization to $235 billion. The move follows a period of rapid earnings growth driven by demand for artificial-intelligence and accelerated-computing chips.
"NVIDIA's growth is being driven by a once-in-a-generation platform shift to AI and accelerated computing," CEO Jensen Huang said in a statement. "Our cash generation gives us the capacity to invest in the technologies that advance this transformation and return capital to shareholders. This authorization reflects our confidence in the long-term opportunity ahead."
Analysts note that Nvidia’s forward price-to-earnings multiple has fallen from its peak earlier this year and now sits around 24 times, close to the S&P 500 average of about 20 times, despite the company’s high growth rate. The buyback is seen as a way to deploy cash while the stock trades at a relatively lower valuation compared with its recent highs.