Overview
- Nvidia’s board approved the $150 billion increase to its share repurchase program, lifting the company’s remaining authorization to $235 billion as reported on Monday, Sept. 28.
- The company says it plans to execute the full remaining program through its fiscal year ending January 2028, but the authorization is a ceiling not a binding schedule and repurchases can be paused or paced at management’s discretion.
- CEO Jensen Huang linked the move to huge cash generation from AI data-center demand and reaffirmed a policy of returning roughly half of free cash flow to shareholders through dividends and buybacks.
- Markets reacted with modest gains and analysts estimate the full program could cut outstanding shares by about 4% and add only a few cents to EPS in 2027, with UBS putting the uplift at roughly $0.08 per share.
- Key watchpoints are the pace of actual repurchases, whether the program diverts funding from R&D or data-center investments, and competitive pressure from AMD, Intel and hyperscaler custom chips that could affect future cash flow.