Nvidia announces historic $150 billion share buyback program

Dusseldorf. The US chip company Nvidia has increased its share buyback program by $150 billion. It is the largest share buyback in the history of the US economy. Together with programs already underway, Nvidia is now allowed to spend a total of $235 billion on its own shares by January 2028, as the company known for its AI chips announced on Monday.

The previous record came from Apple: The iPhone maker announced a $110 billion buyback program in 2024 and, according to Bloomberg data, held all five places of the largest US authorizations to date. Nvidia now exceeds this value by around 36 percent.

Large buyback programs are often seen on the stock market as a sign that management considers its own shares to be undervalued. For established large corporations, however, they usually coincide with declining growth - as was the case with Apple in 2024, when the iPhone business lost momentum, but the company continued to make high profits from its market dominance.

At Nvidia the case is different: According to an analysis by the “Financial Times”, revenues continue to grow at around 90 percent per year, significantly faster than at Apple at the time of the announcement. The billion-dollar buyback program is less a sign of declining growth than a bet by management that free cash flow will increase faster. Recently, however, there have been repeated warnings about an AI bubble bursting.