On September 29, 2026, U.S. chip giant NVIDIA announced a groundbreaking decision to allocate an additional $150 billion for stock buybacks. This “largest-ever” authorization will elevate NVIDIA’s total stock buyback program to $235 billion, surpassing Apple’s record of $110 billion set in 2024.
The company stated that the buyback is expected to be completed within the fiscal year ending on January 30, 2028. Market analysts believe that NVIDIA’s move comes amid intensifying competition in the field of artificial intelligence (AI) chips and pressure on stock performance from its competitors, showcasing the company’s confidence in its long-term growth prospects.
With strong demand for its expensive high-end AI chips and accelerated computing products, NVIDIA has demonstrated robust profitability and cash generation capabilities. The company reported a quarterly profit of $59.69 billion last month and held $22.44 billion in cash and cash equivalents as of the end of the quarter in July.
NVIDIA’s founder and CEO Jensen Huang stated, “NVIDIA’s growth is driven by the transformation of the generation’s unique platform of artificial intelligence and accelerated computing. Our cash generation capacity enables us to invest in the technologies that drive this transformation and return capital to our shareholders. This authorization reflects our confidence in future long-term opportunities.”
According to data compiled by LSEG, the added $150 billion buyback on Monday exceeds the market value of about 84% of the companies in the S&P 500 index.
While the demand for AI chips remains strong, NVIDIA’s stock performance is facing stiff competition from its peers. This year, NVIDIA’s stock price has risen approximately 20-24%, roughly in line with the Nasdaq 100 index; however, its competitors such as AMD have seen their stock prices more than double, and Intel’s increase is over threefold.
LSEG data shows that NVIDIA’s current forward P/E ratio has dropped to about 16.5 times, the lowest level since January 2015, and far below its 15-year average of 30 times. Some market analysts view this as a sign of slowing profit growth expectations.
Ben Barringer, Technology Research Director at Quilter Cheviot, pointed out that NVIDIA’s massive buyback this time mirrors Apple’s past strategy – using buybacks to inject confidence into the market and support stock prices during business growth slowdowns and multiple valuation pressures. This move can enhance earnings per share (EPS) as the outstanding shares decrease.
Although NVIDIA is confident about the future and predicts around a 70% revenue growth in the 2028 fiscal year, Wall Street and global markets still harbor concerns about the AI industry.
Investors are starting to question whether the tens of billions of dollars in AI infrastructure spending driven by tech giants will actually generate the expected economic benefits in the future.
The development of the AI industry also faces societal challenges, including protests against the expansion of large data centers worldwide and concerns about rapid AI adoption leading to significant unemployment on a global scale.
Jacob Bourne, an analyst at eMarketer, summarized, “AI infrastructure development will not maintain its current explosive pace forever, but NVIDIA is sending a strong signal of confidence, indicating a persistent market demand for its hardware and services, and the company has enough financial strength to balance business investments and shareholder returns.”
(This article references reports from Reuters and AP)