Nvidia launches record $150 billion share buyback and AI safety platform
Nvidia announced a $150 billion share repurchase, the largest ever, and unveiled a new AI safety platform, sending its stock higher in early trading.
Nvidia's shares rose in early trading after the company disclosed a $150 billion share buyback, the biggest authorization in corporate history, raising its total repurchase authority to $235 billion. The move signals that management believes the stock is undervalued, with a trailing price-to-earnings ratio near 30, its lowest level in about four years, even as analysts project earnings per share to nearly double this fiscal year.
The company also introduced a new platform aimed at establishing safety guardrails for artificial-intelligence applications. Gil Luria, head of technology research at D.A. Davidson, said the buyback reflects Nvidia's strong cash position and that the safety initiative is intended to support broader market growth.
Nvidia's market capitalization now exceeds $5.5 trillion, roughly $500 billion more than the next-largest public company. The firm is scheduled to release its third-quarter earnings on Nov. 17.