Building confidence with real investments! Nvidia (NVDA.US) announces a record-breaking $150 billions stock repurchase.

According to Zhihu Finance APP, NVIDIA (NVDA.US), the chip giant at the center of the artificial intelligence (AI) boom, has increased its stock buyback plan by a record-setting $150 billion, reflecting CEO Jensen Huang's confidence in the company's continued growth. This $150 billion authorization from NVIDIA breaks the previous record for the largest corporate buyback in the U.S., set by Apple (AAPL.US) in 2024 at $110 billion. As of press time, NVIDIA's shares rose more than 3% in early U.S. trading on Monday.

NVIDIA announced in a statement on Monday that the board of directors has approved an additional $150 billion in buybacks under the existing stock repurchase plan, bringing the total remaining authorized buyback amount to $235 billion. The company expects to complete all remaining buybacks by fiscal year 2028.

NVIDIA founder and CEO Jensen Huang stated: “NVIDIA's growth is driven by a once-in-a-century platform shift—the wave of artificial intelligence and accelerated computing. Our strong cash flow allows us to invest in technology R&D to advance this transformation, while also returning capital to shareholders. This increase in the buyback amount reflects our confidence in long-term development opportunities.”

The boom in developing AI models and infrastructure has fueled demand for NVIDIA's graphics processing units (GPUs), making it the most valuable publicly traded company in the world. However, due to concerns about the sustainability of this spending surge, AI stocks including NVIDIA have come under continued pressure recently.

Typically, large-scale buyback authorizations indicate that company management believes its stock is undervalued, but this often also relates to growth slowing down at large, mature firms. For example, when Apple set the buyback record, its iPhone business growth was slowing, and it was mainly relying on its dominance in the smartphone market for profit.

However, NVIDIA's trajectory stands in stark contrast. According to previously released results, NVIDIA achieved revenue of $96.221 billion in the second fiscal quarter, up 106% year-on-year and 18% quarter-on-quarter; under GAAP, net profit for the quarter reached $59.688 billion, an increase of 126% year-on-year; diluted earnings per share were $2.46; and gross margin was 75.0%, up about 2.6 percentage points from the same period last year. NVIDIA expects revenue and net profit to soar 90% and 99%, respectively, in fiscal year 2027 ending January next year. NVIDIA also expects sales in fiscal year 2028 to grow 70%, far exceeding analysts' previous expectations of around 45%. This shows that despite implementing massive shareholder returns, NVIDIA's fundamentals remain in a period of rapid expansion.

In addition, NVIDIA's stock price rose about 20% in 2026, a gain that dwarfs those of other semiconductor manufacturers. The disconnect between NVIDIA's strong fundamentals and its stock valuation prompted CEO Jensen Huang to declare that NVIDIA is “the world's first and only growth value stock.” At a Goldman Sachs technology conference held earlier this month, he said the company is “severely misunderstood.” He stated: “We are not only growing, but also continuously expanding our market share.”