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NVIDIA's Stock Gains 1.7% as It Unveils Historic Buyback
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Key Takeaways
NVIDIA adds $150 billion to its buyback program, the largest increase in history.
NVIDIA plans to execute its $235 billion remaining buyback capacity through fiscal 2028.
Strong AI demand and cash generation support investments and shareholder returns.
NVIDIA Corporation (NVDA - Free Report) has announced a massive expansion of its share repurchase program on Sept. 28, authorizing an additional $150 billion for stock buybacks. The move represents the largest increase in a share repurchase authorization in history, surpassing Apple Inc.’s (AAPL) $110 billion authorization in 2024.
The new authorization increases NVIDIA’s remaining buyback capacity to $235 billion. The company said it expects to execute the entire remaining program through fiscal 2028, giving it substantial flexibility to return capital to shareholders while continuing to invest heavily in artificial intelligence (AI) and accelerated computing.
AI Growth and Capital Returns
NVIDIA CEO Jensen Huang said the company’s growth is being driven by a major shift toward AI and accelerated computing. He added that strong cash generation provides the capacity to invest in technologies supporting this transformation while also returning capital to shareholders.
The announcement comes as NVIDIA continues to benefit from robust demand for its AI processors, networking products and related technologies. Growing cash generation has enabled the company to increase capital returns while maintaining significant investment in its broader AI ecosystem.
Stock Rises on Buyback News
NVIDIA’s shares gained 1.7% on Sept. 28 following the announcement, outperforming several other major technology stocks. The record buyback underscores management’s confidence in the company’s long-term growth prospects while providing additional support for shareholder returns.
Comparison With Peers
Nvidia, which currently boasts a Zacks Rank #1 (Strong Buy), is part of the Zacks Semiconductor - General industry. NVDA’s shares have surged 22.7% year to date compared with 30.2% growth for the industry. Intel Corporation (INTC - Free Report) and Texas Instruments Incorporated (TXN - Free Report) , two of NVDA’s peers from the same industry, have gained 214% and 60.6% in the period, respectively. Both INTC and TXN currently carry a #3 (Hold). You can see the complete list of today’s Zacks #1 Rank stocks here.
Bottom Line
NVIDIA’s record $150 billion buyback expansion highlights its strong cash-generation capacity amid sustained AI demand. However, NVDA’s 22.7% year-to-date gain trails the Semiconductor-General industry, while peers Intel and Texas Instruments have delivered stronger returns.
View the Zacks #1 Rank List
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NVIDIA's Stock Gains 1.7% as It Unveils Historic Buyback
Key Takeaways
NVIDIA Corporation (NVDA - Free Report) has announced a massive expansion of its share repurchase program on Sept. 28, authorizing an additional $150 billion for stock buybacks. The move represents the largest increase in a share repurchase authorization in history, surpassing Apple Inc.’s (AAPL) $110 billion authorization in 2024.
The new authorization increases NVIDIA’s remaining buyback capacity to $235 billion. The company said it expects to execute the entire remaining program through fiscal 2028, giving it substantial flexibility to return capital to shareholders while continuing to invest heavily in artificial intelligence (AI) and accelerated computing.
AI Growth and Capital Returns
NVIDIA CEO Jensen Huang said the company’s growth is being driven by a major shift toward AI and accelerated computing. He added that strong cash generation provides the capacity to invest in technologies supporting this transformation while also returning capital to shareholders.
The announcement comes as NVIDIA continues to benefit from robust demand for its AI processors, networking products and related technologies. Growing cash generation has enabled the company to increase capital returns while maintaining significant investment in its broader AI ecosystem.
Stock Rises on Buyback News
NVIDIA’s shares gained 1.7% on Sept. 28 following the announcement, outperforming several other major technology stocks. The record buyback underscores management’s confidence in the company’s long-term growth prospects while providing additional support for shareholder returns.
Comparison With Peers
Nvidia, which currently boasts a Zacks Rank #1 (Strong Buy), is part of the Zacks Semiconductor - General industry. NVDA’s shares have surged 22.7% year to date compared with 30.2% growth for the industry. Intel Corporation (INTC - Free Report) and Texas Instruments Incorporated (TXN - Free Report) , two of NVDA’s peers from the same industry, have gained 214% and 60.6% in the period, respectively. Both INTC and TXN currently carry a #3 (Hold). You can see the complete list of today’s Zacks #1 Rank stocks here.
Bottom Line
NVIDIA’s record $150 billion buyback expansion highlights its strong cash-generation capacity amid sustained AI demand. However, NVDA’s 22.7% year-to-date gain trails the Semiconductor-General industry, while peers Intel and Texas Instruments have delivered stronger returns.