Nvidia said on Monday it would spend another $150 billion buying back its own shares, in what the chip company said was the largest stock buyback in history.
The increase comes four months after the artificial intelligence chipmaker’s board added $80 billion to the company’s buyback program, bringing the total remaining amount authorized to $235 billion on top of earlier purchases.
“Nvidia’s growth is being driven by a once-in-a-generation platform shift to A.I. and accelerated computing,” Jensen Huang, Nvidia’s chief executive, said in a statement.
“Our cash generation gives us the capacity to invest in the technologies that advance this transformation and return capital to shareholders,” he added. “This authorization reflects our confidence in the long-term opportunity ahead.”
Nvidia’s announcement is the latest sign of the extraordinary flood of money into the markets being fueled by the A.I. boom. A host of companies are rushing to build data centers and release new models amid a global race to dominate the technology.
Share buybacks reward investors, including executives and employees, because they lift stock prices by limiting the supply of shares for sale. But critics say the actions can take money away from potential investments in hiring or research and development.
The chipmaker’s stock price has skyrocketed amid the explosion in demand for A.I. Nvidia’s chips are the centerpiece of giant A.I. data centers, and demand for those chips has become a barometer of growing demand for the technology.
Other companies have been buying tens of billions of dollars’ worth of those chips, making Nvidia the most valuable public company in the world, with a market capitalization of about $5.6 trillion.
The buyback follows a company report last month that its revenue more than doubled, to $96.22 billion, for the quarter that ended in July. Just three years ago, Nvidia’s quarterly profit was $6.2 billion.
In August, Nvidia told investors that its projected revenue in the current quarter would increase 90 percent from a year ago to $108 billion, in an indication that the A.I. boom still had plenty of momentum.
Nvidia expects to execute the total remaining buyback program through its fiscal year 2028, which ends in late January.
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