Nvidia Approves Record $150 Billion Stock Buyback, Surpassing Apple

Nvidia, a leading chip manufacturer and major beneficiary of the artificial intelligence boom, has announced an unprecedented expansion of its share repurchase program, increasing it by $150 billion. This brings the total authorized amount for buybacks to $235 billion, which the company expects to utilize through fiscal year 2028. According to Reuters, this is the largest such authorization in history, exceeding Apple's $110 billion buyback approval from earlier this year.

Share repurchases involve a company buying back its own stock from shareholders. This action reduces the number of outstanding shares, potentially increasing the ownership stake and earnings per share for remaining investors, even if the company's overall profits remain unchanged. However, the approved amount represents authorization for future purchases, not a guarantee of immediate returns or a commitment to a specific stock price increase.

The market reacted positively to the news, with Nvidia's stock rising approximately 1.2% in pre-market trading, as reported by Reuters. Nvidia CEO Jensen Huang stated that the company's strong cash generation allows it to invest in technology while also returning capital to shareholders. He added that the authorization reflects confidence in the company's long-term opportunities.

Nvidia maintains a significant development presence in Israel, notably expanding after its acquisition of Mellanox. In December, the company announced plans to build a new campus in Kiryat Tivon, Israel, designed to accommodate over 10,000 employees and spanning approximately 160,000 square meters. Construction is slated to begin in 2027, with initial occupancy expected in 2031.