Nvidia Lifts Buyback by $150 Billion as Stock Trades at 16.7 Times Forward Earnings
Updated
Updated · CNBC · Oct 2
Nvidia Lifts Buyback by $150 Billion as Stock Trades at 16.7 Times Forward Earnings
3 articles · Updated · CNBC · Oct 2
Summary
$150 billion in added repurchase capacity lifted Nvidia’s remaining buyback authorization to $235 billion, which the company expects to use through fiscal 2028.
The move comes as Nvidia shares have lagged the Philadelphia Semiconductor Index by 55% this year and 75% over the past year, leaving the stock at its cheapest valuation in at least a decade.
16.7 times forward earnings marks a sharp discount to Nvidia’s roughly 35-times average over the past five and 10 years, even as the company keeps expanding in AI chips and software.
106% revenue growth in the latest quarter and management’s forecast for about 70% growth in fiscal 2028 underscore the disconnect between the stock’s relative weakness and the business’s momentum.