Nvidia authorizes $150 billion in stock buybacks, but AI hardware focus remains
Nvidia’s board approved a $150 billion increase to its share repurchase program, raising the total to $235 billion—the largest single buyback authorization in U.S. corporate history. The move reflects the company’s record free cash flow, with 60% returned to investors in the first half of fiscal 2027. Nvidia’s gross margins remain strong at 75% of sales, converting 42 cents into free cash flow…
Key points
- Nvidia authorized $150 billion in stock buybacks, totaling $235 billion—the largest U.S. corporate buyback ever
- Vera Rubin platform cuts inference costs by 90% and reduces GPU needs by 75% for training, expected to drive 70% YoY revenue growth in 2028
- Nvidia plans rack-scale solutions like NVL72 to expand AI infrastructure access beyond hyperscale customers
Beyond buybacks, Nvidia’s Vera Rubin platform—launched in August—delivers a 90% cost reduction in inference and 75% fewer GPUs for training. The company expects Rubin to generate 20% of data center revenue in Q3 fiscal 2027 and guide 70% year-over-year growth in fiscal 2028. Nvidia is also expanding into rack-scale solutions like the NVL72, targeting broader AI infrastructure markets beyond hyperscale customers. The company’s focus on innovation—including agentic AI and robotics—suggests its growth strategy remains AI-driven, not shareholder payouts.
The story so far
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Nvidia Authorizes a Record $150 Billion in Stock Buybacks. The Real Prize Is Where the Rest of Its Cash Is Going.
fool.com · 1 October 2026
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This text was published by fool.com and written by Daniel Foelber. It is reproduced here with attribution so you can read it in full; the rights remain with the publisher. Read it at the source ↗
Coverage and discussion
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