Nvidia increases share buyback to record $235 billion

Nvidia reports record results every quarter. The shareholders should also be involved in this. However, not in the form of dividends, but through price maintenance. The group is implementing a superlative share buyback program.

The chip company Nvidia is massively increasing its share buybacks. The US company announced that the volume of the current program will be increased by $150 billion to a total of $235 billion. This is the largest increase in economic history. Nvidia shares then rose by around one percent in premarket trading on Wall Street.

The semiconductor manufacturer is one of the beneficiaries of the global construction boom in data centers for artificial intelligence (AI) and has been recording double- or triple-digit growth rates every quarter for several years. “We are able to invest in future-oriented technologies and distribute capital to our shareholders,” emphasized CEO Jensen Huang.

According to analyst estimates, Nvidia will generate sales of around $108 billion and a net profit of around $59 billion in the current quarter. In the last quarter of the year, the group had revenue of a good $96.2 billion - doubling the previous year. Nvidia is currently expecting sales to continue to rise in the coming financial year. These could therefore be slowed down more by delivery bottlenecks than by a lack of demand.

Nvidia has become the most valuable company in the world thanks to the immense need for powerful processors. The company's graphics chips, originally made for video games, are the heart of many AI data centers.

Nvidia's biggest customers - US tech heavyweights Amazon, Microsoft, Alphabet and Meta - are expected to invest a total of $800 billion in AI data centers and infrastructure this year. That's almost double the total global spending in these areas last year.