Nvidia has authorized an additional $150 billion to its share buyback program, boosting its total to $235 billion, which the company hails as the largest increase in repurchase authorization history. This strategic move is fueled by the chip giant’s robust cash generation amid the escalating artificial intelligence boom and its central role in what CEO Jensen Huang calls the ‘largest infrastructure build-out in human history.’
The authorization reflects Nvidia’s confidence in long-term growth and its capacity to return capital to shareholders, as combined hyperscaler capital expenditure is projected to surpass $1.3 trillion by 2027 to build essential AI infrastructure.
Nvidia, the undisputed leader in artificial intelligence chips, announced a monumental expansion of its share buyback program, authorizing an additional $150 billion. This strategic move dramatically boosts its total share repurchase authorization to a staggering $235 billion, marking what the chip giant proudly describes as the largest increase in share repurchase history.
The announcement comes amidst an unprecedented boom in artificial intelligence and the massive infrastructure spending required to power this transformative technology. Nvidia anticipates completing this colossal buyback program through fiscal year 2028, signaling strong long-term confidence from the company's leadership.
As the primary producer of the most advanced chips essential for AI, Nvidia has become a key beneficiary of the global race to build robust AI infrastructure. The company's stock has seen a remarkable surge, climbing 24% over the past 12 months and pushing its market capitalization to an impressive $5.42 trillion. Shares saw a 2.8% gain on Monday following the announcement.
Nvidia stock performance over the past year highlights its significant growth.
CEO Jensen Huang emphasized the significance of this period, stating, "NVIDIA's growth is being driven by a once-in-a-generation platform shift to AI and accelerated computing." He added, "Our cash generation gives us the capacity to invest in the technologies that advance this transformation and return capital to shareholders. This authorization reflects our confidence in the long-term opportunity ahead."
Industry projections further underscore the scale of this investment wave, with S&P Global Ratings forecasting combined hyperscaler capital expenditure to exceed $1.3 trillion by 2027. This includes vast sums dedicated to constructing cutting-edge data centers vital for AI operations.
Just earlier this month, Huang indicated Nvidia's ambitious plans to double the number of chips it sells in 2027. Beyond its flagship graphics processing units (GPUs) like the Grace Blackwell and Vera Rubin systems, Nvidia's extensive product portfolio includes central processing units (CPUs), switch chips, optical networking components, laptop chips, Jetson chips for robotics and autonomous vehicles, and even the chip powering Nintendo's upcoming Switch 2 gaming console.
VIDEO: Watch CNBC's full interview with Nvidia CEO Jensen Huang (25:23)
Jensen Huang discusses the company's trajectory and the future of AI. For the full interview, please visit CNBC.com.
Reflecting on the broader economic landscape, Huang told CNBC's "Squawk Box," "I think we're going through the largest infrastructure build-out in human history, and we have the benefit of being a very central part of that." He reiterated the company's commitment to shareholders: "We're going to generate a lot of cash in the coming years, and every single year, as we generate more cash, we'd like to be able to return it back to shareholders."
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