Nvidia Boosts Share Repurchase Authorization
Nvidia (NASDAQ: NVDA) announced on September 28, 2023, that it has increased its share repurchase authorization by $150 billion, bringing the total to $235 billion. This is the largest buyback authorization in history, surpassing Apple’s previous record of $110 billion approved in 2024. Following the announcement, Nvidia’s shares rose approximately 2%, trading near $230.
The company has a diluted share count of around 24.1 billion shares, translating to a market valuation of approximately $5.5 trillion. If fully executed, the repurchase would account for over 4% of its outstanding shares. Nvidia anticipates utilizing this authorization by fiscal 2028, with plans to spend more than $40 billion per quarter, significantly increasing from its current buyback rate of about $20 billion.
In the first half of fiscal 2027, Nvidia generated free cash flow of $69.9 billion, a 77% increase year-over-year. CEO Jensen Huang attributes the buyback strategy to expected growth in cash generation.
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