Nvidia approves record $150 billion share buyback plan as AI boom powers cash generation

Jensen Huang said.

Demand for Nvidia’s GPUs and accompanying networking and software products has surged as technology companies, governments and AI developers pour billions of dollars into data centres capable of training and deploying increasingly sophisticated AI models.

The company’s financial performance has reflected that spending wave. Nvidia reported revenue of $96.2 billion for its fiscal second quarter, more than double the level recorded a year earlier, while data-centre revenue surged 117% to $89 billion.

The latest buyback authorisation also highlights Nvidia’s ability to fund aggressive investments in new products and infrastructure while simultaneously returning substantial capital to shareholders.

Share repurchases reduce the number of shares outstanding when completed and can increase earnings per share, though the eventual impact depends on the price at which a company buys its stock and the pace of purchases. Nvidia has not committed to spending the entire $235 billion immediately, with the programme expected to run through fiscal 2028.

The chipmaker is pushing ahead with successive generations of AI hardware and recently reported continued strong demand across its data-centre business. It has also been expanding partnerships aimed at financing the enormous amount of infrastructure required for AI computing.

In August, Nvidia announced partnerships with Apollo, BlackRock, Blackstone, Brookfield, Goldman Sachs and KKR aimed at mobilising more than $500 billion of third-party capital over time for AI infrastructure.

The record buyback increase therefore comes as Nvidia seeks to balance two uses of its growing financial firepower, investing in the infrastructure and technology underpinning the AI boom while returning more cash to investors.

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