Nvidia’s $40 Billion Share Buybacks Draw Criticism Amid AI Boom
Nvidia (NASDAQ: NVDA) spent over $40 billion on share repurchases in fiscal 2026, representing 33% of its $120 billion net income. Despite its impressive market capitalization of approximately $4.1 trillion as of March 27, which exceeds Apple by $420 billion, analysts question whether this capital would be better allocated to research and development to capitalize on the current AI boom.
The company is heavily tied to the advancement of AI technologies, with significant investments in its own infrastructure and equity stakes in firms like OpenAI and CoreWeave. Nvidia’s share buyback program, which still has $58.5 billion left in authorization, reflects its strategy to invest in its own growth as it navigates the volatile landscape of AI adoption.
