Nvidia shares went up early Monday after the company announced the biggest stock buyback ever by a U.S. business.
Nvidia’s board added $150 billion to its share buyback plan, raising the total to $235 billion. The company plans to finish the remaining buybacks by the end of its 2028 fiscal year, which ends in January 2028.
Nvidia’s stock climbed in early trading, making up for earlier losses. As of Friday’s close, the company was valued at $5.42 trillion.
CEO Jensen Huang said Nvidia’s growth comes from a major shift toward AI and faster computing. He added that the company’s strong cash flow lets it invest in new technology and still return money to shareholders.
Apple previously held the record for the largest U.S. buyback with its $110 billion program announced in 2024. Barron’s has pointed out that Nvidia has been following Apple’s approach to increasing shareholder returns.
Nvidia has promised to give back half of its free cash flow to shareholders through dividends and buybacks. FactSet estimates the company will make $183 billion in free cash flow this year. Earlier in the year, Nvidia raised its quarterly dividend from 1 cent to 25 cents per share, which means about $24 billion in annual dividend payments at the current share count.
This big buyback may help reassure shareholders who are worried about Nvidia’s large investments in the wider AI sector. As of July 26, Nvidia held $99 billion in equity investments and had another $25 billion in investment commitments.
