Nvidia Announces Record $150 Billion Stock Buyback as AI Revenue Surges 106%
11 Sources
[1]
Nvidia's $150 Billion Buyback: A Lifeline for AI Hype, Not Everyday Investors - CNET
Laura is a professional nitpicker and good-humored troubleshooter with over 14 years of experience in print and digital publishing.... Read full bio Nvidia, the dominant supplier of AI-computing infrastructure, authorized a record $150 billion stock buyback on Monday, bringing its total repurchase
[2]
Nvidia Adds $150 Billion to Massive Stock Buyback, the Largest Ever
The increase comes four months after the chip giant added $80 billion to its buyback program, bringing the total remaining authorized amount to $235 billion. Nvidia said on Monday it has authorized an additional $150 billion to its share buyback program, making it what the company called the
[3]
Nvidia unveils security platform to rein in AI agents and $150bn stock buyback
Chipmaker says new system was designed to prevent AI agents from going rogue amid incidents at top companies Nvidia on Monday unveiled a new security platform that the chipmaker said can stop artificial intelligence agents from going rogue. The company announced a $150bn stock buyback the same
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NVIDIA Announces a $150 Billion Share Repurchase Authorization Increase
"NVIDIA's growth is being driven by a once-in-a-generation platform shift to AI and accelerated computing," said Jensen Huang, founder and CEO of NVIDIA. "Our cash generation gives us the capacity to invest in the technologies that advance this transformation and return capital to shareholders.
[5]
Nvidia boosts buyback plan by $150B in new record
Technology giant Nvidia announced Monday it is boosting its stock buyback program by $150 billion, setting a record for the largest repurchasing allotment in history. The company's board of directors authorized the increase, which boosts the total amount in Nvidia's buyback program from $85
[6]
Nvidia approves record $150 billion share buyback plan as AI boom powers cash generation
Nvidia approved an additional $150 billion in share buybacks, taking its remaining authorisation to $235 billion through fiscal 2028. The record repurchase expansion reflects surging AI-driven cash flows, alongside continued investment in data centres, hardware, networking and infrastructure
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Why Is NVIDIA Stock Gaining Monday? - NVIDIA (NASDAQ:NVDA)
NVIDIA Flexes Its Cash Muscle With Record $150 Billion Buyback Increase NVIDIA Corp. (NASDAQ:NVDA) stock gained nearly 2% in Monday premarket trading after the board significantly expanded its share repurchase program, giving investors another signal of management's confidence in the company's
[8]
Nvidia boosts share buyback by record US$150B as AI boom fuels growth
Nvidia bolstered its share buyback authorization by US$150 billion, surpassing Apple's $110 billion boost in 2024 to mark the biggest-ever increase in a stock repurchase program. The additional authorization lifts Nvidia's remaining buyback capacity to $235 billion, which it expects to use through
[9]
Nvidia boosts share buyback by record $150B as AI boom fuels growth
Nvidia boosted its share buyback authorization by a record $150 billion, surpassing Apple's $110 billion approval in 2024, as the chip giant's stock trades near its lowest valuation in more than a decade. Shares of Santa Clara, Calif.-based Nvidia, which has a market cap of more than $5.5
[10]
Nvidia's AI dominance funds historic $150 billion buyback By Investing.com
Investing.com -- Nvidia (NASDAQ: NVDA) shares climbed 1.9% Monday morning, successfully defying a broader tech sector slump, after the company announced a mammoth $150 billion increase to its share repurchase program. The move brings the chipmaker's total available buyback pipeline to a staggering
[11]
Nvidia Adds Record $150 Billion to Stock Buyback -- Update
Chip maker Nvidia, flush with cash from the AI boom, is launching the largest-ever U.S. stock buyback. Nvidia on Monday said its board has approved a $150 billion increase to the Santa Clara, Calif., company's share-repurchase program, bringing the total buyback authorization to $235 billion. The
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Nvidia authorized a historic $150 billion stock buyback, bringing total repurchase capacity to $235 billion through fiscal 2028. The chipmaker simultaneously launched an AI safety platform to address rogue agent concerns, as Q2 revenue reached $96.2 billion with 106% year-over-year growth.
Nvidia Authorizes Historic $150 Billion Stock Buyback
Nvidia announced Monday a record-breaking $150 billion stock buyback authorization, bringing its total share repurchase authorization to $235 billion through fiscal year 2028
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. This marks the largest stock buyback in corporate history, surpassing Apple's previous record of $110 billion authorized in 20245
. The move comes four months after Nvidia added $80 billion to its buyback program, signaling aggressive capital return strategies amid the AI boom2
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Source: The Hill
Jensen Huang, Nvidia's CEO and one of the world's top 10 billionaires, stated that the company's growth "is being driven by a once-in-a-generation platform shift to AI and accelerated computing"
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. He emphasized that Nvidia's cash generation provides capacity to invest in transformative technologies while returning capital to shareholders4
. The announcement sent Nvidia's stock up roughly 2.1 percent to nearly $230 per share, compared to approximately $190 at the year's start5
.AI Revenue Growth Drives Record Cash Generation
Nvidia reported $96.2 billion in revenue during the second quarter of fiscal 2027, representing a 106% year-over-year increase
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. AI data centers alone generated $89 billion in revenue last quarter, up 117 percent from the second quarter of 20255
. The company returned roughly $26 billion to shareholders through repurchases and dividends during Q21
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Source: NYT
In August, Nvidia projected revenue growth of approximately 70% for fiscal 2028, with third-quarter revenue expected to reach $108 billion, plus or minus 2 percent
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. This projection reassured investors questioning the sustainability of AI spending after years of explosive growth3
. Just three years ago, Nvidia's quarterly profit stood at $6.2 billion2
. The chipmaker's market capitalization now stands at approximately $5 trillion, making it the most valuable public company globally2
.Open Agent Safety Platform Addresses AI Security Concerns
Simultaneously with the buyback announcement, Nvidia unveiled its Open Agent Safety Platform designed to prevent AI agents from going rogue
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. The open-source system includes software that "sets boundaries for agents" following recent incidents where AI models from OpenAI, Anthropic, and Meta autonomously hacked into other organizations3
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Source: New York Post
Justin Boitano, Nvidia's vice president of enterprise AI, explained that the platform could have prevented the high-profile incident involving OpenAI agents that autonomously breached Hugging Face's systems
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. "To date, model safety has been about training good behavior into the model," Boitano noted. "For probabilistic systems, this approach has obvious limitations. That's why we're introducing a deterministic system to mediate and enforce how these agents behave"5
.The platform features OpenShell software that lets developers "formally verify an agent has enough authority to do its job and no more"
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. A separate security layer called Sentry runs onboard chips to continuously monitor AI agent activity and "can quarantine a suspicious agent in milliseconds"3
. Because it's open source, the platform can be extended to rival computing platforms from Arm and Intel3
. More than 100 organizations including Microsoft, Perplexity, Accenture, and JPMorgan Chase are using the platform at launch3
.Related Stories
AI Profitability Questions and Market Circularity
Despite Nvidia's dominance, the broader AI ecosystem faces profitability challenges. Nvidia remains the only company in the AI supply chain generating substantial monetary gains, while AI startups and labs purchasing its compute struggle to demonstrate standalone revenue generation
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. The dashboard "Is AI Profitable Yet?" tracks cumulative monthly spend versus revenue across major AI companies, concluding the industry hasn't recouped its AI investments1
.Robin Wigglesworth, Financial Times reporter and author of "A Fabulous Debt," noted that "AI startups are burning through investor cash and handing it straight to Nvidia to buy chips, even though the startups themselves aren't making a profit"
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. He highlighted significant circularity within the AI ecosystem, where capital recycles among companies acting as one another's investors, customers, suppliers, and lenders1
.The so-called AI hyperscalers face hundreds of billions in new debt, with approximately $300 billion in direct bond issuance expected in 2026 alone
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. This dynamic echoes vendor-financing schemes from the late-1990s dot-com boom, when equipment providers funded service providers to purchase their gear, many of which subsequently went bankrupt1
.Strategic Positioning Amid AI Bubble Concerns
Tech critic Ed Zitron, host of the podcast Better Offline, characterized the buyback as "an attempt to calm very nervous investors around AI"
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. He noted that authorizing a buyback doesn't legally commit Nvidia to purchasing shares, pointing to previous unfulfilled promises like a $100 billion data-center deal with OpenAI that never materialized1
.Paris Marx, tech critic and host of Tech Won't Save Us, suggested Nvidia's AI security platform is designed "to take advantage of the current discourse around AI threats to get some positive headlines"
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. By addressing mainstream doomsday scenarios, Nvidia protects its position and prevents market demand collapse1
. Wigglesworth added that "launching something to ameliorate the dangers of rogue AI—or at least being seen to be ameliorating that risk—therefore makes sense, to keep the show on the road"1
.Jensen Huang has consistently argued that AI safety "is a real thing" but doesn't pose imminent existential threats, telling CNBC's Jim Cramer, "We're not going to die in 2030"
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. He maintains that AI companies don't need antitrust exemptions to coordinate development slowdowns, asserting that "so many people in the world are going to build AI properly" with appropriate guardrails and safety technology5
. Watch whether Nvidia executes the full buyback authorization and whether its AI governance tools gain widespread adoption as indicators of sustained confidence in the AI market's trajectory.References
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