Nvidia announced a record-breaking $150 billion stock buyback on Monday, signaling management’s confidence in the long-term AI market. This authorization, the largest increase in a share repurchase authorization in history, brings the company's total repurchase capacity to $235 billion through 2028, even as executives manage a disconnect between the firm's rapid growth and its declining valuation multiples.
A Record-Breaking $235 Billion Commitment
The chipmaker’s decision to commit an additional $150 billion to share repurchases marks the largest increase in a share repurchase authorization in history. This move expands the company’s existing program significantly, pushing the total available for stock buybacks to $235 billion through 2028. The scale of this capital deployment far exceeds recent efforts by other tech giants, including Apple, Alphabet, and Meta.
Nvidia has been aggressively returning cash to shareholders. In fiscal year 2025, the company repurchased approximately $34 billion in shares, followed by over $40.4 billion in fiscal year 2026. During the first half of fiscal year 2027, which concluded in July 2026, the company bought back an additional $39 billion.
Jensen Huang’s Strategy Amid Valuation Declines
Despite record-setting business performance, Nvidia’s stock has faced a steady decline in its forward price-to-earnings (P/E) multiple since August 2024. The chipmaker currently trades at approximately 24 times expected earnings, a figure that has moved increasingly closer to the broader S&P 500 average of 20 times. For a company maintaining high growth rates, this narrowing gap suggests a disconnect between the company’s valuation and its growth.
Balancing AI Expansion and Shareholder Returns
The company maintains that its cash generation is sufficient to support both initiatives simultaneously. During the first half of fiscal year 2027, Nvidia generated $74.4 billion in operating cash flow, allowing the firm to return $46.1 billion to shareholders while continuing to fund its infrastructure and technology pipeline.
