Nvidia has authorized an additional $150 billion for its share repurchase program, taking the remaining buyback authorization to $235 billion through fiscal 2028. The move is the largest increase in a corporate share-repurchase authorization on record and comes as the chipmaker continues to generate substantial cash from demand for AI infrastructure.
The announcement on September 28, 2026, gives Nvidia another way to return capital to shareholders while it continues spending heavily on AI chips, networking and data-center infrastructure.
Nvidia shares rose in early trading after the announcement. Reuters reported that the stock was up about 0.8% in premarket trading after briefly gaining as much as 1.8%; Nvidia had already gained more than 20% in 2026 through Friday’s close.
Nvidia’s New Buyback Authorization in Numbers
The size of the announcement is easier to understand when separated into new authorization, remaining capacity and actual repurchases.
|
Nvidia buyback figure |
Amount |
|
New authorization announced Sept. 28 |
$150 billion |
|
Remaining authorization after increase |
$235 billion |
|
Expected completion |
Through fiscal 2028 |
|
Shares repurchased in Q2 FY2027 |
$20 billion |
|
Total shareholder returns in Q2 FY2027 |
$26 billion |
|
Remaining authorization at July 26, 2026 |
$99 billion before today’s increase |
Nvidia said its board approved the additional $150 billion under its existing repurchase program and expects to execute the remaining authorization through fiscal 2028. The company described the increase as the largest share-repurchase authorization increase in history.
The Important Distinction: Authorization is not Cash Already Spent
The $235 billion figure does not mean Nvidia has already spent $235 billion buying its own stock.
A share-repurchase authorization gives a company permission to purchase shares up to a specified amount. Management decides when and how quickly to use that authorization.
That distinction is particularly important in Nvidia’s case. At the end of its second quarter of fiscal 2027 on July 26, the company had approximately $99 billion remaining under its existing authorization. Nvidia then added another $150 billion, bringing the available authorization to $235 billion.
The company therefore has significantly expanded its capacity to buy shares rather than immediately committing the entire amount to purchases.
Why is Nvidia Increasing its Buyback Now?
The decision comes after another quarter of extraordinary growth.
Nvidia reported $96.2 billion in revenue for the second quarter of fiscal 2027, up 106% from the same quarter a year earlier. Data-center revenue reached $89 billion, an increase of 117% year over year. Net income rose to $59.7 billion.
The figures show why Nvidia has greater financial flexibility than it did before the current AI infrastructure boom.
The company generated enough cash to return approximately $26 billion to shareholders during the quarter, including $20 billion in share repurchases and $6 billion in dividends.
Nvidia CEO Jensen Huang said the company’s cash generation allows it to invest in technologies supporting the AI transition while also returning capital to shareholders.
Nvidia’s Buyback Has Been Expanding Rapidly
The latest authorization is not an isolated change in Nvidia’s capital-return policy.
In May 2026, Nvidia’s board approved an additional $80 billion for its share-repurchase program. At the end of its first fiscal quarter, the company had $38.5 billion remaining under the authorization.
By the end of the following quarter, Nvidia reported approximately $99 billion remaining after repurchasing shares and paying dividends.
The sequence illustrates how quickly the company has been increasing both its ability and willingness to return capital.
Nvidia’s Recent Capital-Return Timeline
- May 2026: Nvidia authorized an additional $80 billion in buybacks.
- April-July 2026: The company returned approximately $26 billion to shareholders in the second fiscal quarter.
- August 2026: Nvidia reported $96.2 billion in quarterly revenue and $89 billion in data-center revenue.
- September 28, 2026: The board approved another $150 billion, lifting remaining authorization to $235 billion.
- Through fiscal 2028: Nvidia expects to execute the remaining authorization.
How Does Nvidia’s Buyback Compare with Apple’s Record?
The scale of Nvidia’s announcement is significant because it exceeds Apple’s previous record increase.
Reuters reported that Nvidia’s $150 billion increase surpasses Apple’s $110 billion authorization increase in 2024, making Nvidia’s latest expansion the largest increase in a share-repurchase program.
The comparison is useful, but there is an important difference between an authorization and completed repurchases. The headline numbers represent permission to buy shares, not the number of shares ultimately removed from circulation.
The eventual effect on Nvidia’s share count will depend on how much of the authorization the company actually uses and the prices it pays for the shares.
What Does a Stock Buyback Do?
A buyback allows a company to use corporate cash to purchase its own outstanding shares. Those shares can be retired or otherwise removed from the number of shares available to investors.
If earnings remain constant while the number of outstanding shares falls, earnings per share can increase because the same earnings are distributed across fewer shares.
For Nvidia, however, the effect cannot be judged from the authorization alone.
Three variables will matter:
- How much Nvidia actually spends
- The average price paid for the shares
- How Nvidia’s earnings and share count change during the same period
A $235 billion authorization therefore does not automatically translate into a $235 billion increase in shareholder value.
Nvidia Still Has to Balance Buybacks With AI Spending
The new authorization arrives while Nvidia is investing aggressively in the infrastructure supporting its core business.
The company is supplying GPUs, networking products and systems to hyperscalers, AI developers and data-center operators. Nvidia’s latest results showed data-center revenue of $89 billion in the second quarter alone.
That creates a capital-allocation question for the company: how much cash should be returned to shareholders, and how much should remain available for expansion and strategic investment?
Nvidia’s latest announcement suggests management believes it can do both.
The company’s own statement links its capital-return decision to its ability to generate cash while continuing to invest in technologies supporting AI and accelerated computing.
Why the $235 Billion Figure Matters Beyond Nvidia
The expanded authorization is also a reflection of how Nvidia’s financial position has changed during the AI boom.
In fiscal 2024, Nvidia was primarily discussed as a semiconductor company benefiting from accelerating demand for GPUs. By 2026, its financial results show a much larger business with quarterly revenue approaching $100 billion and data-center revenue accounting for the overwhelming majority of sales.
That scale gives Nvidia considerably more flexibility in deciding how to deploy its cash.
The company is simultaneously funding growth, paying a quarterly dividend and buying back shares. During fiscal 2027’s second quarter alone, Nvidia returned approximately $26 billion to shareholders.
The new authorization signals that management expects this cash-generation capacity to remain substantial enough to support a much larger repurchase program through fiscal 2028.
What Investors Should Watch Next
The announcement itself is only the first step. The more revealing numbers will come from Nvidia’s subsequent financial reports.
Investors will be able to assess:
- Actual shares repurchased, rather than the authorized amount
- Average repurchase prices
- Changes in diluted shares outstanding
- Free cash flow available for future buybacks
- Data-center revenue growth
- Gross margins
- Capital spending by major AI customers
- Nvidia’s spending on strategic investments and infrastructure
Those figures will show whether the expanded authorization becomes a major reduction in Nvidia’s share count or primarily provides management with additional flexibility.
