NVDA Stock Climbs After Nvidia Approves ‘Largest Buyback Increase’ In Company History

The latest authorization follows an $80 billion increase in May.

• Nvidia expanded its share repurchase authorization by $150 billion, bringing the remaining authorization to $235 billion.
• Nvidia called the increase the “largest buyback increase” in its history and expects to execute the program through fiscal 2028.
• The $235 billion authorization represents roughly 4% of Nvidia’s recent $5.4 trillion market value.

Nvidia (NVDA) shares gained in early morning trade on Monday after the company’s board authorized a $150 billion increase to its share repurchase program, bringing the remaining authorization to $235 billion.

Nvidia called it the “largest buyback increase” in its history and said it expects to execute the full program through fiscal 2028, which ends in January 2028.

"Our cash generation gives us the capacity to invest in the technologies that advance this transformation and return capital to shareholders." 

Jensen Huang, Co-founder and CEO, Nvidia 

NVDA stock edged nearly 1% higher in pre-market trade, beating the broader selloff in the market. On Stocktwits, retail sentiment around the AI bellwether remained in ‘bearish’ territory over the past day. 

The latest increase follows Nvidia’s $80 billion expansion of the program in May, when the company also raised its quarterly dividend to $0.25 a share from $0.01. 

Nvidia’s Cash Generation Fuels Capital Returns

Nvidia generated $48.55 billion in free cash flow in the quarter ended April 26, when revenue reached $81.61 billion, up 85% from a year earlier.

If the full $235 billion authorization were spread evenly over the roughly 16 months through January 2028, it would amount to about $15 billion in potential repurchases per month. 

That is a calculation based on the company’s authorization and fiscal timeline, not a forecast from Nvidia. For comparison, the latest quarter’s free cash flow works out to roughly $16 billion per month if annualized across the quarter. 

Nvidia’s market capitalization stood at around $5.4 trillion at the time of writing, putting the $235 billion authorization at roughly 4% of the company’s market capitalization. 

Nvidia Buyback Comes Amid Broader AI Spending Focus

The buyback announcement comes on the same day Nvidia launched a new AI agent safety platform, adding another product development effort to the company’s broader AI strategy.

Investors are also looking ahead to Micron Technology’s (MU) earnings on Wednesday for another read on demand across the AI infrastructure market, particularly high-bandwidth memory used in AI systems.

NVDA stock has gained around 20% this year and nearly 30% in the past 12 months. 

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