Nvidia announced the largest stock buyback in the history of U.S. companies
The total volume of buybacks will reach $235 billion
Photo: Jack Hong / Shutterstock
Nvidia announced a $150 billion increase in its share buyback program, bringing the total buyback amount to $235 billion. The Financial Times (FT) calls it the largest in the history of U.S. corporations. The previous record was set by Apple in 2024, when the company repurchased $110 billion worth of shares.
Nvidia's stock jumped by just over 1% in premarket trading on this news.
Details
On September 28, Nvidia’s board of directors approved a $150 billion increase in the share buyback program. The buyback will be completed during fiscal year 2028, according to the press release. That fiscal year ends in January, MarketWatch explains.
“Nvidia’s growth is driven by the shift toward AI and accelerated computing—a once-in-a-generation platform shift,” said Jensen Huang, the company’s CEO, commenting on the decision. Investing in technologies “that drive this transformation, while simultaneously returning capital to shareholders,” Nvidia’s “ability to generate cash” makes this possible, he added, emphasizing that the decision to increase the buyback “reflects [the company’s] confidence in its long-term prospects.”
Context
The decision to increase Nvidia’s buyback program came amid a slowdown in the growth of the company’s stock, the FT notes. Although the artificial intelligence boom made Nvidia the world’s most valuable company—and the company’s stock had risen by more than 1,200% since OpenAI launched its ChatGPT chatbot in late 2022— the rapid rise in its stock price slowed in 2026. Since the start of the year, Nvidia’s stock has risen by about 20%. The Financial Times attributes this to the fact that more and more investors are questioning the sustainability of the AI boom. Within the company itself, they are trying to dispel concerns about a bubble forming in the AI market, notes Bloomberg. In August, Nvidia forecast a 70% increase in sales for the next fiscal year.
On Wall Street, the outlook for the company is generally positive: Nvidia’s stock has 69 “buy” recommendations (Buy and Overweight ratings), two “hold” recommendations, and one “sell” recommendation. Analysts’ average price target of $333.47 per share implies an increase of nearly 50% from the last closing price.
This article was AI-translated and verified by a human editor
