Nvidia authorizes $150 billion share buyback expansion through fiscal 2028

Record repurchase authorization

Nvidia's board of directors authorized an additional $150 billion for its share repurchase plan on Monday, 28 September 2026, marking the largest single buyback expansion in US corporate history. The authorization raises the company's total active buyback capacity to $235 billion, which management expects to deploy through the end of fiscal year 2028 in January 2028. The decision follows an $80 billion buyback expansion authorized four months earlier. The new $150 billion total surpasses Apple's 2024 program of $110 billion, previously the largest in US corporate history, by approximately 36 percent, eclipsing a company that according to Bloomberg data had previously held all five of the largest US share repurchase authorizations. Following the announcement, Nvidia's market capitalization reached approximately $5.43 trillion, maintaining its position as the world's most valuable publicly traded company ahead of Apple at $4.98 trillion.

Revenue growth and cash generation

The repurchase plan is financed by expanding cash reserves generated from worldwide purchases of artificial intelligence hardware. Nvidia reported that free cash flow reached nearly $70 billion during the first half of fiscal year 2027, spanning late January through late July. For the quarter ending in July, quarterly revenue more than doubled from the prior year to $96.22 billion, up from a quarterly profit of $6.2 billion three years earlier. In August, the company projected revenue for the subsequent quarter would rise 90 percent year-on-year to $108 billion, while forecasting annual revenue growth of approximately 70 percent for fiscal year 2028. Management stated that high operating cash flow allows the company to return capital to shareholders while funding research and providing loans and equity investments across the artificial intelligence ecosystem.

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.

Customer demand and ecosystem investments

Demand for Nvidia accelerators is driven by developers of large language models and computing platforms, including OpenAI, Anthropic, SpaceX, and Google, which uses Nvidia chips for cloud infrastructure while designing internal processors. These processors power systems such as ChatGPT, Claude, and Gemini. Beyond data centers, the company supplies silicon and components for autonomous vehicles, robotics, and the Nintendo Switch 2 gaming console. Jensen Huang stated earlier in September that Nvidia expects to sell twice as many chips in 2027. Market projections indicate ongoing infrastructure deployment, with Goldman Sachs estimating global AI investments will exceed $1 trillion in 2026, while S&P Global Ratings projected in August that cloud provider capital expenditures will surpass $1.3 trillion by 2027.

Market response and growth dynamics

Nvidia shares rose between 1.2% and 1.7% in premarket trading on Monday before gaining approximately 3% at the New York market open, advancing while the broader Nasdaq index indicated a lower opening. The stock has gained 24% over the preceding 12 months and roughly 20% since the start of 2026, following a cumulative gain of more than 1,200% since ChatGPT launched in late 2022. Substantial repurchase programs typically occur at mature enterprises experiencing decelerating revenue, such as Apple during its 2024 iPhone sales slowdown. In contrast, Nvidia's sales are projected to expand by roughly 90% across 2026. Chief executive Jensen Huang framed the buyback as an affirmation of industry-wide computing restructuring.

Nvidia's growth is being driven by a once-in-a-generation platform shift to AI and accelerated computing.