On Monday Nvidia disclosed an extra $150 billion authorized for its share repurchase plan, lifting the total authorized amount to $235 billion. The company said the increase represents the biggest authorization boost ever recorded. Management indicated the remaining purchases will be completed by the end of fiscal year 2028.
The chipmaker’s shares have risen 24 percent over the past year, pushing its market valuation to roughly $5.42 trillion. On the day of the announcement the stock gained about 2.8 percent. The rally reflects investor confidence in Nvidia’s dominant position in AI-focused semiconductor markets. Analysts attribute the surge to strong demand for its graphics processing units and data-center products.
“NVIDIA’s growth is being driven by a once-in-a-generation platform shift to AI and accelerated computing,” CEO Jensen Huang said in a statement to CNBC. He added that robust cash generation enables the firm to fund transformative technologies while returning capital to shareholders, underscoring confidence in the long-term AI opportunity.
Industry analysts at S&P Global Ratings project that combined hyperscaler capital spending will exceed $1.3 trillion by 2027, as cloud providers race to expand AI data-center capacity. Nvidia’s advanced GPUs and system-on-chip solutions are positioned to capture a sizable share of that investment, reinforcing the company’s revenue outlook.
Beyond its flagship graphics processors, Nvidia manufactures a broad portfolio that includes the Grace Blackwell and Vera Rubin AI accelerators, central processing units, high-speed switch silicon, optical-networking components, laptop chips, and Jetson modules for robotics and automotive applications. The firm also supplies the processor embedded in Nintendo’s Switch 2 gaming console, illustrating its reach across consumer and enterprise segments.
“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,” Huang told CNBC’s Squawk Box. He said the company expects to generate substantial cash in coming years and intends to return a growing portion of those earnings to shareholders.