Updated version 4 - Driven by the surge in artificial intelligence, Nvidia expands its stock buyback to a record 150 billions dollars.
路透社2026/09/28 14:11Updated stock price data in paragraph 2 and added details in paragraph 7.
Anhata Rooprai
Reuters, September 28 - NVIDIA NVDA.O has raised its stock buyback authorization to a record $150 billion, exceeding Apple’s AAPL.O $110 billion buyback plan approved in 2024 (link). The chip giant's stock is currently trading near its lowest valuation in more than a decade.
Shares of Santa Clara, California-based NVIDIA rose over 3% in early trading. As of last Friday’s close, the stock was up more than 20% year-to-date.
This additional authorization brings NVIDIA's remaining stock buyback amount to $235 billion. The company expects to use these funds before fiscal year 2028, as surging demand for AI training and inference is fueling cash flow growth.
According to data compiled by LSEG, NVIDIA shares are now trading at roughly 16.5 times 12-month forward earnings, the lowest P/E ratio since January 2015 and well below the 15-year average of 30 times. Some analysts see this as a sign that profit growth expectations are slowing.
The announcement comes at a time when stock buybacks (link) are slowing down, with repurchase volume dropping by about 50% from July to September 23.
"Our cash flow gives us the ability to invest in technologies driving this transformation and return capital to shareholders," CEO Jensen Huang said in a statement.
Based on LSEG data, NVIDIA’s $150 billion buyback increase exceeds the market value of about 84% of S&P 500-listed companies.
Last month, NVIDIA projected that revenue would grow about 70% by fiscal year 2028 (link), reassuring investors who questioned how long the AI spending boom could last after several years of explosive growth.
The company has also been investing in AI startups and cloud service providers, prompting some investors to question whether such investments are indirectly supporting demand for its own chips.
At the end of the July quarter, NVIDIA held $22.44 billion in cash and cash equivalents.
(To make its reporting accessible to non-native English speakers, Reuters provides an automated translation into several other languages. Automated translation may contain errors or may fail to include the required context; Reuters does not guarantee the accuracy of the automated translation text and provides it for readers' convenience only. Reuters disclaims any liability for any damages or losses arising from the use of the automated translation feature.)
Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.
You may also like
Saudi Arabia and UAE plan to cooperate with Asia to strengthen oil reserves
According to Nikkei News, Saudi Arabia and the United Arab Emirates will help Asia build up its oil reserves. Despite being dependent on imports, the region has not maintained adequate supplies. Led by Japan, the Asian Zero Emission Community, comprising 11 countries, will hold a ministerial meeting in the Philippines this Thursday. Senior government officials from Saudi Arabia and the UAE will participate in special consultations and are expected to express their intention to cooperate on oil reserves. On October 11, the International Energy Forum will be held in Saudi Arabia. This forum serves as a ministerial-level dialogue between oil-producing and importing countries. Japan is expected to participate and share a cooperation framework with Asia. The outcomes of the Asian Zero Emission Community meeting will be compiled into a joint statement, which will serve as the basis for discussions between member states and Middle Eastern oil-producing countries on strengthening oil reserves. Bilateral talks will follow to finalize the details and scale of such efforts. It is expected that Saudi Arabia and the UAE will expand exports to target countries and prioritize supply in emergencies.
Saudi Arabia and the UAE plan to expand their crude oil reserves in Asia
Market dynamics indicate that Saudi Arabia and the United Arab Emirates plan to expand their crude oil reserves in Asia. This move reflects the continued optimism of these two major oil-producing countries regarding the potential demand in the Asian energy market, and it will further strengthen the stability of oil supply in the region, thereby contributing to the improvement of the regional energy security system.
Four attacks occurred in the Strait of Hormuz from October 1 to 4
The UK Maritime Trade Operations office announced on Sunday that four attacks occurred in the Strait of Hormuz between October 1 and 4. All incidents took place on the Omani side of the strait, with each vessel hit by unidentified projectiles. The Strait of Hormuz, as one of the world's most vital oil transit routes, handles nearly one-third of the world's seaborne crude oil trade. Attacks in this area often have a direct impact on the stability of international energy markets. So far, no party has claimed responsibility for these attacks, and the subsequent developments remain to be observed.
Wright says energy supply through the Strait of Hormuz continues to increase
U.S. Secretary of Energy, Wright: Energy supplies shipped through the Strait of Hormuz continue to increase.
Crypto prices
More
