Nvidia added $150 billion to its stock buyback program, bringing total authorized amount to a record $235 billion. CEO Jensen Huang attributed the move to the company’s AI-driven growth and strong cash generation. Nvidia’s revenue more than doubled to $96.22 billion for the quarter ending July, as detailed in a recent company report. The chipmaker’s market capitalization now stands at approximately $5.6 trillion. Shares rose 1.8% following the announcement, with rivals AMD and Intel also gaining.
Nvidia (NVDA) has increased its stock buyback program by $150 billion, raising the total remaining authorized amount to a record $235 billion. The board had previously added $80 billion to the program four months ago.
Jensen Huang, Nvidia’s CEO, stated, “Nvidia’s growth is being driven by a once-in-a-generation platform shift to A.I. and accelerated computing.” He added, “Our cash generation gives us the capacity to invest in the technologies that advance this transformation and return capital to shareholders.”
The buyback follows a company report that revenue more than doubled to $96.22 billion, as stated for the quarter that ended in July. Three years ago, Nvidia’s quarterly profit was $6.2 billion.
Other companies have purchased tens of billions of dollars of Nvidia’s chips, making it the world’s most valuable public company with a market cap of about $5.6 trillion. Earlier this month, Huang said Nvidia would double the number of chips it sells in 2027.
Combined hyperscaler capital expenditure is projected to exceed $1.3 trillion by 2027, according to S&P Global Ratings in August. This reflects the race to build AI infrastructure, including data centers.
Nvidia shares have climbed 24% over the past 12 months, lifting its market cap to $5.42 trillion. The stock rose 1.8% in early trading after the buyback update. Chip rivals AMD and Intel also rose a few points following the announcement.
