Nvidia Expands Buyback by $150 Billion to $235 Billion as AI Spending Fuels Cash Surge
Updated
Updated · CNBC · Sep 28
Nvidia Expands Buyback by $150 Billion to $235 Billion as AI Spending Fuels Cash Surge
3 articles · Updated · CNBC · Sep 28
Summary
$150 billion in new authorization lifts Nvidia’s total share repurchase program to $235 billion, with the company aiming to complete the remaining buybacks by fiscal 2028.
Record AI infrastructure spending underpins the move, with CEO Jensen Huang citing strong cash generation and confidence in a long-term shift to AI and accelerated computing.
Nvidia has been a prime beneficiary as demand rises for its advanced AI chips and broader semiconductor lineup, and Huang said earlier this month the company would double chip sales in 2027.
Shares have climbed 24% over the past 12 months, pushing Nvidia’s market value to $5.42 trillion; the stock added 1.24% in premarket trading Monday.
The backdrop remains a massive buildout in AI capacity, with combined hyperscaler capital expenditure projected by S&P Global Ratings to exceed $1.3 trillion by 2027.
With a historic $150 billion buyback, is Nvidia signaling supreme confidence, or a lack of viable acquisitions in an AI-saturated market?
As Nvidia secures massive 20-year AI factories requiring gigawatts of power, can global energy grids truly sustain this unprecedented technological expansion?
Nvidia’s $235 Billion Buyback: Record Capital Return, AI Growth, and the Risks Ahead
Overview
Nvidia’s record $235 billion buyback in September 2026 highlights the company’s explosive growth from the AI and accelerated computing boom, which supercharged its cash generation. Massive investments by cloud hyperscalers and governments in AI clusters drove Nvidia’s Data Center revenue to new highs, fueling the buyback. Nvidia’s strategy favors buybacks over dividends due to tax advantages and regulatory hurdles for big acquisitions. At the same time, Nvidia’s ecosystem lock-in through proprietary software and key acquisitions makes it hard for rivals to compete, but rising custom ASIC development by hyperscalers signals a long-term challenge to Nvidia’s dominance.