Nvidia Adds $150B To Buyback Plan As AI Cash Piles Up

Nvidia has given itself room to buy back far more of its own stock. The chipmaker announced on Monday that its board approved an additional $150 billion in share repurchases, lifting the amount still available under its authorization to $235 billion. Nvidia expects to use the authorization through fiscal 2028, but it has not committed to spending all of it.

That distinction matters. A buyback authorisation is permission from the board, not a cheque already written. Nvidia can purchase shares over time, slow down, or stop depending on market conditions and its other priorities. Investors should not read the $235 billion figure as cash leaving the company today.

Even so, the scale is striking. Nvidia described the increase as the largest in its history. It is another sign of how much money the AI infrastructure boom has put within reach of a company whose chips power the data centres behind many of today’s most prominent models and services.

Nvidia’s latest results offer some context. The company reported $96.2 billion in quarterly revenue in August, a figure that underlined the strength of AI demand even as customers continue to spend heavily on computing infrastructure. With that kind of cash generation, the board has more flexibility to return money to shareholders while the company funds research, new chips and the systems around them.

Buybacks can reduce the number of shares in circulation and lift earnings per share, but only after shares are actually repurchased. They can also look less attractive if a company buys at a price that later proves too high. For Nvidia, the question is not whether it can announce a large number. It is whether repurchases will be the best use of its cash as competition, capacity constraints and customer investment strategies evolve.

There is a wider AI business story here. Nvidia is selling into an industry where capital is being recycled through chip purchases, cloud capacity and investments in AI developers. Questions about those relationships have already surfaced around Nvidia’s AI cloud deals. A giant buyback sits alongside that debate, showing how much of the AI boom’s value is flowing back to the chipmaker’s shareholders.

For now, the hard news is the authorization itself; $150 billion more approved, $235 billion available in total, and an expected window through fiscal 2028. The pace and price of any actual purchases will tell the more consequential story.