Nvidia’s AI dominance funds historic $150 billion buyback

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 $235 billion, which management expects to execute through fiscal year 2028.

This quarter-trillion-dollar authorization marks a dramatic acceleration in Nvidia’s capital return strategy. As recently as 2020 and 2021, the company’s stock repurchases were virtually non-existent. However, as the generative AI boom transformed Nvidia’s balance sheet, its buybacks surged—climbing from roughly $10 billion in fiscal 2023 to nearly $34 billion in fiscal 2025. Just last year, a $50 billion authorization was considered massive; this new $150 billion injection makes it the largest repurchase increase in the company’s history.

While stock buybacks inherently boost earnings per share by taking shares off the open market, an authorization of this scale is fundamentally a confidence play.

"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. This authorization reflects our confidence in the long-term opportunity ahead."