Nvidia announces record $150 billion share buyback increase

Nvidia increased its share buyback authorization by $150 billion, the largest ever, bringing its total to $235 billion. This move, fueled by strong AI-driven growth, saw its shares rise 0.8% in premarket trading. The company forecasts 70% revenue growth for fiscal 2028 and ended Q2 with $22.44 billion in cash.

NVIDIA (NASDAQ:NVDA) stock rose 2% premarket after expanding its share repurchase program to $235 billion, signaling confidence in its AI business. CEO Jensen Huang linked the move to strong cash generation and AI opportunities. The company also launched an AI safety platform, with over 100 organizations involved. Analysts maintain a Buy consensus with an average price target of $348.22. Shares traded at $228.58 premarket.

Taiwan Semiconductor Manufacturing (TSM) plans to accelerate 2-nanometer chip production, targeting 120,000 wafers monthly by late 2026, up from prior estimates. This follows increased orders from Apple (AAPL), Nvidia (NVDA), and others for next-gen processors and AI accelerators. 2nm chips contributed 3% to Q2 wafer revenue, with advanced nodes (7nm and below) making up 77%.

China may permit Alibaba and ByteDance to buy Nvidia's RTX Pro 5500 chips, according to The Information. The Ministry of Industry and Information Technology reportedly requested purchase details from the companies. Nvidia aims to ship 500,000 units per quarter starting late December. The move comes amid U.S. export restrictions on advanced semiconductor technology.

Nvidia's board increased its share repurchase program by $150 billion, raising the remaining authorization to $235 billion. The company plans to execute the buybacks through its 2028 fiscal year, reflecting confidence in long-term opportunities. Shares rose 1.2% in premarket trading. According to the CEO, the move allows Nvidia to invest in AI and return capital to shareholders.

Nvidia (NVDA) announced a $150 billion stock buyback plan, the largest in history, bringing total authorization to $235 billion. CEO Jensen Huang cited strong cash generation and confidence in AI-driven growth. Nvidia's forward P/E ratio is 24, near the S&P 500's 20, despite rapid growth. The buyback may reflect a strategic move to capitalize on the stock's recent decline.