Nvidia sets biggest-ever buyback plan as AI chip competition weighs on stock performance
NVDA•Nvidia increased its share buyback authorization by $150 billion, raising remaining capacity to $235 billion, which it expects to use through fiscal 2028. The company ended its July quarter with $22.44 billion in cash and cash equivalents.
1. Record buyback increase
Nvidia boosted its share buyback authorization by $150 billion, bringing remaining buyback capacity to $235 billion. The company expects to deploy that capacity through fiscal 2028. Nvidia last announced an $80 billion buyback in May.
2. Competition and valuation
Nvidia shares were up just over 20% through Friday, broadly in line with the Nasdaq 100 but behind AMD and Intel. The article says intensifying AI-chip competition is weighing on Nvidia’s performance relative to peers, as investors question whether the AI infrastructure spending boom can be sustained.
3. Cash and growth outlook
Nvidia ended the July quarter with $22.44 billion in cash and cash equivalents. Last month, it forecast about 70% revenue growth for fiscal 2028. CEO Jensen Huang said the company’s cash generation gives it capacity to invest in technologies and return capital to shareholders.
