Nvidia Increases Share Buyback Program by $150 Billion

Nvidia has increased its share buyback program by $150 billion. This is the largest program approved by a single company, surpassing even Apple's $110 billion plan from 2024.

Following the change, Nvidia can spend up to an additional $235 billion on repurchasing its shares. The company plans to spend this amount by the end of fiscal year 2028. At the end of the quarter that closed in July, Nvidia held $22.44 billion in cash.

Investors are currently focused on how long the massive spending related to artificial intelligence will continue. Nvidia's shares have gained more than 20% this year, though the stock lags behind AMD and Intel.

Nvidia's share price is trading at 16.5 times expected earnings for the next 12 months, the lowest level since 2015. Last month, the company said it expects revenue to grow by approximately 70% in fiscal year 2028.

Source: Reuters