Nvidia Corp. authorized an additional $150 billion in share repurchases on Monday, raising its total buyback program to $235 billion2,6,7. The company said the increase is the largest share repurchase authorization in history.
Nvidia Corp. expects to complete the remaining buyback through fiscal year 2028. The company is currently in the third quarter of its fiscal 20274. Nvidia Corp. also plans to boost its current dividend of $0.25 per share, though it did not specify the size or timing of the planned increase.
Cash engine behind the authorization
The buyback expansion rests on the cash Nvidia Corp. generates as the dominant supplier of advanced chips for AI infrastructure. CEO Jensen Huang framed the move accordingly: "NVIDIA's growth is being driven by a once-in-a-generation platform shift to AI and accelerated computing," he said in a statement. "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".
Nvidia Corp. bought back roughly $34 billion in fiscal 2025 and a combined $39 billion during the first two quarters of fiscal 2027, according to FactSet. In May, the board had authorized an additional $80 billion in share repurchases. Nvidia Corp. has committed to return at least 50% of its free cash flow to shareholders through buybacks and dividends. Wall Street projects Nvidia Corp. to generate roughly $440 billion in free cash flow over its next six unreported quarters, according to FactSet data.
Stock performance and earnings trajectory
Nvidia Corp. shares rose almost 3% on Monday, bringing their year-to-date gain to roughly 24%. Bloomberg reported NVDA is up 20% in 2026. The company's market capitalization stands at $5.42 trillion.
For fiscal 2027, Nvidia Corp. is projected to grow earnings by 94%, according to FactSet estimates, an acceleration from 60% growth in the prior year. Adjusted earnings per share have more than doubled in back-to-back quarters. Despite those results, Nvidia Corp. was the seventh-worst performer this year in the iShares Semiconductor ETF, which contains 30 stocks.
Jim Cramer said on CNBC that the buyback could "change the trajectory of the stock" if the company is "active and in there every day".
ANALYSIS A $235 billion total buyback authorization dwarfs the capital-return programs of other semiconductor companies and reflects the margin structure Nvidia Corp. has built atop AI accelerator demand. The gap between Nvidia Corp.'s earnings growth rate and its relative stock performance within the semiconductor sector helps explain the board's decision to deploy capital through repurchases at current valuations. The projected $440 billion in free cash flow over the next six unreported quarters would more than cover the $235 billion total authorization, leaving substantial room for continued investment in AI infrastructure.