Nvidia Expands Share Buyback to $235 Billion as AI Spending Fuels Cash Generation

SANTA CLARA, Calif., September 30, 2026, ZEX PR WIRE — Nvidia has expanded its share repurchase authorization by $150 billion, creating the largest buyback plan in the company’s history as the artificial intelligence boom continues to generate substantial cash for the chipmaker.

The additional authorization takes Nvidia’s total remaining share repurchase capacity to $235 billion, which the company expects to use through fiscal 2028. The move comes as investors assess how long the current wave of AI infrastructure spending can continue and whether Nvidia can maintain its rapid growth as competition across the semiconductor industry intensifies.

Nvidia shares initially rose more than 2% following the announcement. The company’s stock had gained slightly more than 20% through the Friday close, broadly tracking the Nasdaq 100 but trailing several semiconductor peers including AMD and Intel.

AI Demand Continues to Generate Cash

Nvidia has benefited from strong demand for processors used to build and operate artificial intelligence systems. The company has become a central supplier to the data center infrastructure supporting large language models and other AI applications.

That demand has translated into substantial cash generation, giving Nvidia the flexibility to invest in new technologies while also returning capital to shareholders.

The company’s July quarter ended with $22.44 billion in cash and cash equivalents. Nvidia had previously authorized an $80 billion share repurchase program in May before announcing the additional $150 billion allocation.

The scale of the new authorization is significant beyond Nvidia itself. According to LSEG data cited by Reuters, the $150 billion increase is larger than the market capitalization of roughly 84% of companies in the S&P 500.

Buyback Comes as Valuation Expectations Shift

The decision also comes at a point when investors are paying closer attention to Nvidia’s valuation and the sustainability of AI-related spending.

Nvidia shares were trading at approximately 16.5 times forward earnings, according to LSEG data cited by Reuters. That represented the company’s lowest forward earnings multiple since January 2015 and was well below its 15-year average of about 30.

The lower multiple reflects a market that is becoming more focused on the next phase of Nvidia’s growth rather than simply extrapolating the rapid expansion of recent years.

Nvidia forecast approximately 70% revenue growth for fiscal 2028 in August, providing investors with another indication of the company’s expectations for continued AI infrastructure demand.

At the same time, competition is increasing. AMD has expanded its position in AI accelerators, while other semiconductor companies are developing products designed to capture a larger share of the computing market.

The competitive environment means Nvidia’s ability to maintain its technological lead, pricing power and customer demand will remain important factors for the stock.

Investors Watch the Next Phase of AI Spending

The buyback provides Nvidia with another mechanism for deploying the cash generated by its business, but it does not remove the larger questions surrounding the AI investment cycle.

Technology companies and cloud providers continue to commit substantial amounts of capital to data centers, processors and networking infrastructure. Nvidia remains one of the major beneficiaries of that spending, but investors are increasingly examining whether the pace of investment can remain elevated as AI infrastructure expands.

The company’s expanded repurchase authorization therefore arrives at an important point for the AI trade. Nvidia is simultaneously committing capital to future technologies and signaling that its current cash generation provides room to return substantial amounts to shareholders.

For markets, the development keeps Nvidia at the center of the debate over AI valuations, semiconductor competition and the durability of the technology investment cycle. The company’s future stock performance will continue to depend on whether earnings growth can keep pace with the expectations built around its position in the AI economy.