- NVIDIA announced a $150 billion increase to its stock buyback program, bringing total authorized buybacks to a record $235 billion.
- CEO Jensen Huang cited a “once-in-a-generation platform shift to A.I. and accelerated computing” as the driver of the company’s growth.
- Revenue more than doubled to $96.22 billion for the quarter ending July, with net profit jumping from $6.2 billion three years ago.
- Hyperscaler capital expenditure is projected to exceed $1.3 trillion by 2027 as companies race to build AI infrastructure.
- NVDA shares rose 1.8% in early trading after the buyback news, while rivals AMD and Intel also gained.
Nvidia announced a $150 billion increase to its stock buyback program on Tuesday, bringing the total remaining authorized amount to a record $235 billion. The boost comes just four months after the chipmaker’s board added $80 billion to the program.
“Nvidia’s growth is being driven by a once-in-a-generation platform shift to A.I. and accelerated computing,” CEO Jensen Huang 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.” The buyback follows a company report last month that revenue more than doubled to $96.22 billion for the quarter that ended in July. Just three years ago, Nvidia’s quarterly profit was $6.2 billion.
Other companies have been buying tens of billions of dollars’ worth of those chips, making Nvidia the most valuable public company in the world with a market capitalization of about $5.6 trillion. Consequently, CEO Jensen Huang earlier this month said Nvidia would double the number of chips it sells in 2027, potentially fueling the company and its stock even higher. Combined hyperscaler capital expenditure is projected to exceed $1.3 trillion by 2027, S&P Global Ratings said in August, as companies race to build AI infrastructure including data centers.
Nvidia (NVDA) has climbed 24% over the past 12 months, lifting its market cap to $5.42 trillion. Meanwhile, the stock responded well to the buyback update, rising 1.8% in early trading. Despite the broader tech sector dipping, Nvidia continues to lead the way thanks to the AI boom. As a result, chip rivals such as AMD and Intel also rose a few points after the announcement.
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