NVIDIA Corporation (NASDAQ: NVDA) shares rose in Monday premarket trading after the chipmaker announced a $150 billion increase to its existing share-repurchase authorization.
NVDA was up 1.21% at $227.80 at 7:20 a.m. ET. The stock closed Friday’s regular session at $225.07, up 0.22%.
NVIDIA said its board authorized the additional $150 billion under the existing repurchase program, raising the total amount remaining under the authorization to $235 billion. The company expects to execute the remaining program through fiscal year 2028. NVIDIA described the $150 billion increase as the largest share-repurchase authorization increase in history.
NVIDIA Tokenized bStocks (NVDAB) was also trading higher, up 1.28% at $227.65, according to CoinMarketCap. CoinMarketCap describes NVDAB as a tokenized bStock providing economic exposure to NVIDIA shares.
$235 Billion Represents Remaining Authorization, Not a New Standalone Buyback
The authorization figures require an important distinction: the $235 billion represents NVIDIA’s total remaining repurchase authority after the increase, rather than a commitment to repurchase $150 billion in shares immediately.
NVIDIA’s latest quarterly filing states that repurchases can be made from time to time depending on market conditions, operating requirements, and other investment opportunities, including through open-market purchases, privately negotiated transactions, Rule 10b5-1 plans, or structured repurchase agreements. The company also said in the filing that it may suspend the repurchase program at its discretion.
CEO Jensen Huang said in Monday’s announcement that NVIDIA’s cash generation gives the company capacity both to invest in technology and return capital to shareholders.
NVIDIA Had Already Expanded Its Buyback Program in May
Monday’s increase follows another expansion of NVIDIA’s capital-return program earlier this fiscal year. On May 18, the board approved an additional $80 billion in repurchase authorization without an expiration date. As of July 26, NVIDIA had $99.3 billion of authorized repurchases remaining.
The company repurchased 203 million shares for $39.8 billion in the first half of fiscal 2027, with $19.7 billion spent on share repurchases in the second quarter.
NVIDIA generated $74.4 billion in operating cash flow during that six-month period and ended July 26 with $56.6 billion in cash, cash equivalents, and marketable debt securities.
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