Nvidia Climbs After Adding $150 Billion to Its Buyback Plan

Nvidia shares rose more than 2% in early-afternoon trading on Monday after the company said its board had authorized another $150 billion for stock buybacks, the largest single addition to a repurchase program on record. The wider market fell.

The new authorization lifts Nvidia’s total remaining buyback capacity to $235 billion, according to a statement the company released before Monday’s open. Nvidia said it expects to work through that amount by the end of its 2028 fiscal year. Chief executive Jensen Huang tied the decision to the cash the company is throwing off from artificial-intelligence and data-center demand, and cast it as a mark of confidence in that business over the years ahead.

Buybacks shrink the number of shares outstanding, which can lift per-share earnings and returns without any change to the underlying business. The scale here is what stands out. At $150 billion, the addition alone would rank among the larger companies in the S&P 500 if it were a firm of its own.

Near the top of its range

The announcement lands with the stock already at the upper end of its recent range. Nvidia closed Friday at $225.07, about 2.3% below its highest close of the past three months, $230.36 on September 4. Across the past 90 days the shares are close to flat, having traded between a low of $190.01 in late July and that early-September high. Friday’s volume came in at four-fifths of the 20-day average. It was a quiet session. The company’s market value stands near $5.5 trillion, keeping it among the most valuable in the world, and its 52-week high of $236.54 is not far off.

A green name on a red day

The buyback stood out on a rough day for stocks. The S&P 500 and Nasdaq were both lower in afternoon trading, pressured by a jump in oil prices after the White House rejected an Iranian proposal tied to the Strait of Hormuz, and by a rise in Treasury yields that revived worries about inflation. Nvidia was the exception. It gained on its own news while most large-caps slid.

There is a reason a buyback reads as confidence rather than caution. A company that expects lean years tends to hoard cash; one that keeps enlarging the sum it will hand back is signaling the opposite. Nvidia has spent the past two years as the clearest beneficiary of corporate spending on AI computing, and Monday’s move extends a capital-return posture it has widened repeatedly as that spending has grown.

On the calendar this week

Monday’s close will show whether the early gain holds once the day’s selling settles. These figures are intraday. Micron, another big memory-chip maker, reports earnings Wednesday, and Nike follows Thursday. The economic calendar carries the government’s PCE inflation reading and a final estimate of second-quarter growth, both due Wednesday, and both feed the bond market that pressured stocks Monday.

This is a general-market summary for information only — not investment advice, and not a recommendation regarding any security.