Nvidia announces $150 billion buyback boost as AI boom drives massive cash flow

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Chipmaking giant and ‘Magnificent Seven’ favourite Nvidia bolstered its share buyback authorisation by $150 billion, lifting the company's remaining buyback capacity to $235 billion.
On Monday, the company announced that its board of directors had increased the size of its buyback program by $150 billion, using its massive balance sheet to repurchase its own stock. The company expects to execute the total remaining program through fiscal year 2028.
The additional authorisation has surpassed Apple's $110 billion boost in 2024, marking the biggest-ever increase in a stock repurchase program.
“NVIDIA’s growth is being driven by a once-in-a-generation platform shift to AI and accelerated computing,” said Jensen Huang, founder and CEO of NVIDIA. “Our cash generation gives us the capacity to invest in the technologies that advance this transformation and return capital to shareholders. This authorisation reflects our confidence in the long-term opportunity ahead.”
Meanwhile, in a filing, NVIDIA said it has introduced an open safety platform for AI agents that places monitoring and security controls outside the AI model. It said its Open Agent Safety Platform brings together its OpenShell and Sentry technologies to create an independent layer for monitoring, policy enforcement and security around AI agents.
Jensen Huang said the company was working with more than 100 industry partners on the platform. “Today, with over 100 industry partners, we introduced the NVIDIA Open Agent Safety Platform, bringing together OpenShell and Sentry. This is bigger than a single product. It's the beginning of an open ecosystem to build the trust layer for safe agent systems,” Huang said.
Last month, the US chip giant announced blockbuster second-quarter results and expects revenue to grow by approximately 70% in fiscal 2028, suggesting that demand for chips powering artificial intelligence projects remains strong. The results and upbeat outlook helped ease some of the concerns that had recently built up around AI stocks.
Nvidia's revenue for the July fiscal quarter more than doubled to $96.2 billion, while adjusted profit came in at $2.22 per share. Revenue from the data centre segment reached $89 billion, representing a 117% jump from the previous year, while edge-computing revenue rose 27% year-on-year to $7.2 billion.
Following the buyback update, the shares were trading 2% higher in pre-market trade at $229, positioning the stock just inches away from hitting the record high of $236.54.
Chip stocks have emerged as some of the biggest beneficiaries of aggressive spending by technology giants to scale up AI infrastructure.
Since the artificial intelligence boom was ignited by OpenAI’s ChatGPT in 2022, Nvidia’s data centre sales have skyrocketed from about $15 billion annually to $194 billion last year.
In the current year, the stock has sustained its winning momentum, surging 21% so far and putting it on track for a fourth consecutive year of gains. From its 2022 low of $11, the stock has gained 1,980%, making it one of the most valuable companies in the US.
(With inputs from Reuters)
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Ksheera Sagar has been working as a Market Research Analyst at LiveMint for the past four years, covering stocks, commodities, and broader financial markets. In this role, he closely tracks daily market movements, corporate earnings, sector trends, and macroeconomic developments. <br><br> He has over a decade of experience in the financial services industry and has previously worked with multiple organisations, including global investment bank J.P. Morgan, bringing strong research experience into the newsroom. <br><br> During his career, he has gained extensive exposure to equity research, market analysis, and financial data interpretation, strengthening his expertise across asset classes and market cycles. <br><br> He is known for his data-driven analysis and crisp, listicle-style market stories that break down complex financial developments across key markets for a wide audience. His strong research skills enable him to write detailed and insightful stories on stocks and sectors, focusing on the underlying factors driving market movements. <br><br> His work combines quantitative insights with clear storytelling, presenting financial developments in a clear and structured manner. Moreover, he enjoys writing multibagger and listicle-style copies. Outside of work, Ksheera enjoys playing the piano and exploring new places. He has a keen interest in travel, music, and continuously learning about global markets and economic trends.
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