Updated version 3 - Driven by the boom in artificial intelligence, Nvidia expands its stock buyback to a record $150 billions.

Updated stock price data in paragraph 3 and added details in paragraph 4

Reuters, September 28 - Nvidia NVDA.O increased its stock buyback authorization by $150 billion, surpassing Apple’s AAPL.O $110 billion (link) repurchase plan approved in 2024, marking the largest increase in a stock buyback plan.

This added authorization brings Nvidia’s remaining buyback capacity to $235 billion, which is expected to be used up before the end of fiscal year 2028, as surging demand for AI training and inference is fueling growth in its cash flow.

Nvidia's shares, based in Santa Clara, California, rose 1.2% in pre-market trading. As of last Friday’s close, the stock has gained over 20% so far this year.

According to data compiled by the London Stock Exchange Group (LSEG), Nvidia’s shares most recently traded at about 16.5 times its 12-month forward price-to-earnings ratio, the lowest since 2015 and well below its 15-year average of 30. Some analysts believe this indicates the market’s expectations for profit growth are slowing.

Previously,from July to September 23,the company’soverall stock buyback volume(link)slowed by about 50%.

“Our cash flow gives us the ability to invest in technologies that drive this transformation and to return capital to shareholders,” CEO Jensen Huang said in a statement.

Last month, Nvidia forecast its fiscal 2028 revenue would grow by about 70% (link), which reassured investors questioning how long the AI spending boom can last after years of explosive growth.

The company has also been investing in AI startups and cloud service providers, which has led some investors to question whether such investments are indirectly supporting demand for its own chips.

Nvidia’s cash and cash equivalents balance stood at $22.44 billion at the end of the July quarter.

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