Real money watches increase confidence! Nvidia (NVDA.US) added $150 billion in share buybacks to record

The Zhitong Finance App learned that chip giant NVDA.US (NVDA.US), which is at the center of the artificial intelligence (AI) boom, added a record 150 billion US dollars to its share repurchase program, reflecting CEO Wong In-hoon's confidence in the company's continued growth. Nvidia's current authorization of 150 billion US dollars broke the record previously set by Apple (AAPL.US) in 2024 for the largest repurchase of 110 billion US companies. As of press release, Nvidia's US stock rose more than 3% at the beginning of the session on Monday.

Nvidia said in a statement on Monday that the board of directors approved an additional repurchase amount of 150 billion US dollars to the existing share repurchase plan, raising the total remaining authorized repurchase amount to 235 billion US dollars. The company expects to complete all remaining repurchase amounts within fiscal year 2028.

Nvidia founder and CEO Wong In-hoon said, “Nvidia's growth stemmed from a once-in-a-century platform transformation, the wave of artificial intelligence and accelerated computing. Abundant cash flow allows us to invest in technology research and development to drive this transformation while returning capital to shareholders. This additional quota reflects our confidence in long-term development opportunities.”

The boom in developing AI models and infrastructure has boosted demand for Nvidia graphics processing units (GPUs), making it the company with the highest market capitalization in the world. However, AI stocks, including Nvidia, have continued to be under pressure recently due to market concerns about the sustainability of this spending boom.

Generally, large-scale buyback authorizations indicate that company management believes its shares are undervalued, but this is also often related to large mature companies facing a slowdown in growth. For example, when Apple set a repurchase record, the growth of its iPhone business was slowing down, and it mainly relied on its dominant position in the smartphone market to obtain profits.

However, Nvidia's trajectory is in stark contrast to this. According to data previously released by Nvidia, the second fiscal quarter achieved revenue of US$96.221 billion, up 106% year on year; under GAAP, Nvidia achieved net profit of US$59.688 billion in the second fiscal quarter, up 126% year on year; diluted earnings per share were US$2.46; gross margin was 75.0%, up about 2.6 percentage points from the same period last year. Nvidia expects revenue and net profit to jump 90% and 99% respectively in the 2027 fiscal year ending January next year. Nvidia also anticipates a 70% increase in sales for the 2028 fiscal year, far exceeding analysts' previous expectations of about 45%. This shows that while Nvidia is implementing huge shareholder returns, its fundamentals are still expanding rapidly.

Furthermore, Nvidia's stock price increased by about 20% in 2026, an increase that dwarfs that of other semiconductor manufacturers. The disconnect between Nvidia's strong fundamentals and its stock valuation prompted CEO Hwang In-hoon to claim that Nvidia is “the world's first and only growth value stock.” At the Goldman Sachs Technology Conference earlier this month, he said the company was “seriously misunderstood.” “We're not only growing, but we're also constantly expanding our market share,” he said.