Nvidia is expanding its share repurchase programme by $150 billion, giving the chipmaker another major avenue to return cash to shareholders as it continues to benefit from surging demand for artificial intelligence and accelerated computing.
The additional authorisation brings the total amount remaining under Nvidia’s share buyback programme to $235 billion, with the company expecting to execute the repurchases through fiscal year 2028.
Nvidia said the latest increase is the largest expansion of a share repurchase authorisation in the company’s history. Its shares rose 1.7% in premarket trading following the announcement, reflecting the initial market response.
The expanded programme comes after Nvidia has already been returning tens of billions of dollars to investors as its business has expanded rapidly alongside the global AI infrastructure boom.
In the second quarter of fiscal 2027, Nvidia returned approximately $26 billion to shareholders through share repurchases and dividends. About $20 billion of that amount came from stock buybacks, while $6 billion was paid in dividends.
The company had approximately $99 billion remaining under its repurchase authorisation at the end of the quarter. The latest $150 billion increase therefore significantly expands the pool of capital available for future buybacks.
Nvidia’s board has now authorised a total of $235 billion in remaining repurchases, which the company plans to deploy through fiscal 2028.
AI Boom Continues to Fuel Nvidia’s Growth
The buyback expansion comes as Nvidia’s financial results continue to reflect the extraordinary demand for AI computing infrastructure.
For its second quarter of fiscal 2027, Nvidia reported revenue of $96.2 billion, representing a 106% increase from the same quarter a year earlier. Data Center revenue reached $89 billion, up 117% year-on-year.
Net income rose 126% to $59.7 billion, while diluted earnings per share increased 128% to $2.46. Nvidia also reported a 75% GAAP gross margin for the quarter.
The results underscore the extent to which Nvidia’s business has become tied to the expansion of AI data centres, cloud computing and increasingly sophisticated AI models.
Chief Executive Jensen Huang has described the current period as an inflection point for AI, arguing that computing demand is accelerating as AI moves from experimentation into commercial applications.
“Compute is revenue,” Huang said in the company’s second-quarter results announcement, as Nvidia pointed to increasing demand from AI labs, startups, cloud providers and enterprises.
What the Buyback Means for Nvidia
A share repurchase allows a company to use its cash to buy its own shares from the market. When shares are retired, the number of shares outstanding declines, potentially increasing the proportion of the company represented by each remaining share.
Buybacks can also provide companies with a mechanism to return excess cash to investors without committing to permanently higher dividend payments.
For Nvidia, the scale of the latest authorisation reflects the company’s ability to generate substantial cash while simultaneously investing heavily in the infrastructure and technology required to maintain its position in AI computing.
The company repurchased approximately 94.4 million shares during the second quarter of fiscal 2027, spending billions of dollars on the programme. Its regulatory filing states that future repurchases may be conducted through open-market purchases, privately negotiated transactions, Rule 10b5-1 trading plans or structured repurchase agreements, depending on market conditions and other factors.
