Nvidia Approves Record $150 Billion Stock Buyback Program

Chipmaker Nvidia has announced its board has authorized an additional $150 billion in share repurchases. The new authorization brings the company's total remaining repurchase authorization to $235 billion. Nvidia stated on Monday that this represents the largest stock buyback program in history and is expected to be completed by the end of fiscal year 2028.

The company's earnings per share have more than doubled in consecutive quarters, a significant achievement nearly four years into the artificial intelligence boom. For fiscal year 2027, Nvidia's earnings are projected to grow by 94%, an acceleration from the 60% growth seen in the prior year.

Analysts have consistently urged Nvidia to utilize its substantial cash reserves for share repurchases. Such buybacks reduce the number of outstanding shares, thereby increasing the ownership stake for remaining shareholders and, all else being equal, boosting earnings per share.

The company had already been increasing its buyback activity. In May, the board authorized an additional $80 billion in repurchases with no expiration date. During the first two quarters of fiscal year 2027, the company spent $39 billion on buybacks, nearly matching the total for the entirety of the previous fiscal year.

Nvidia has committed to returning at least 50% of its free cash flow to shareholders through buybacks and dividends. The company also recently increased its quarterly dividend payout to 25 cents per share.