Nvidia Expands Share Buyback Program to Record $235 Billion

Nvidia has expanded its share repurchase authorization by $150 billion, giving the U.S. chipmaker $235 billion in remaining capacity to buy back its own shares through fiscal 2028. The decision comes as surging demand for artificial intelligence (AI) chips continues to generate substantial cash for the company.

The additional authorization approved by Nvidia’s board on September 28 represents the largest increase to a stock buyback program in history, surpassing Apple’s $110 billion authorization increase announced in 2024. Nvidia had added another $80 billion to its buyback authorization only four months earlier.

AI Growth Supports Nvidia’s Cash Generation

The company has increasingly used its strong cash generation to balance investment in AI and accelerated computing with returns to shareholders. Nvidia ended its July quarter with $22.44 billion in cash and cash equivalents, while its operations have benefited from heavy spending on AI infrastructure, including systems used to train and run advanced AI models.

CEO and founder Jensen Huang said the company’s growth is being driven by a major shift toward AI and accelerated computing. He said Nvidia’s ability to generate cash allows it to continue investing in the technologies behind that transition while also returning capital to shareholders.

Nvidia expects to execute the remaining $235 billion authorization through fiscal 2028. The company generated approximately $177.8 billion in revenue and nearly $70 billion in free cash flow during the first half of its fiscal 2027 year, according to Reuters.

Shares Rise in Pre-Market Trading

Nvidia shares rose as much as 1.8% in pre-market trading on Monday, reaching around $229 per share, after the buyback announcement. The stock had already gained more than 20% since the beginning of the year through Friday’s close.

The scale of the authorization underscores the financial impact of the AI infrastructure boom on Nvidia. The company has also forecast approximately 70% revenue growth for fiscal 2028, as demand for AI training and inference remains a central driver of its business.

For investors, the expanded program provides Nvidia with additional flexibility to return capital while maintaining substantial spending on the hardware and computing platforms underpinning the AI market. The pace at which the company ultimately uses the authorization will depend on its cash generation, investment needs and market conditions.