Nvidia / 28 September 2026

Nvidia Raises Buyback Capacity by $150 Billion

Nvidia's board has added $150 billion to its share repurchase program, lifting the amount still authorized to $235 billion, which the company expects to use through fiscal 2028. Nvidia calls the increase the largest on record. Chief executive Jensen Huang said cash generation allows the company to invest in technology and “return capital to shareholders.” The size and deadline put the program alongside the company's AI infrastructure investments as a defining use of cash over the next several quarters.

The new authorization follows an $80 billion increase approved in May. Nvidia bought $39.8 billion of shares in the first half of fiscal 2027, compared with $24.2 billion a year earlier; $19.7 billion of the latest half-year figure came in the second quarter. The company also paid $6 billion in dividends in that quarter after raising its quarterly dividend from one cent to 25 cents a share. At the end of July, $99.3 billion of repurchase capacity remained. The latest board action therefore greatly enlarges an already fast-moving capital return program.

Nvidia's second-quarter revenue reached $96.2 billion, up 106% year on year, but free cash flow was $21.3 billion, down from $48.6 billion in the first quarter. The decline reflected, in part, longer payment terms on large customer agreements and federal tax payments. Share repurchases and dividends together totaled about $26 billion in the quarter. Those figures make cash conversion, as well as sales growth, relevant to the pace implied by the new authorization.

Capital is going into the AI buildout through other channels. Nvidia held $56.6 billion in cash and marketable debt securities and another $42.8 billion in marketable equity securities at the end of July. It issued $25 billion of senior notes in June. Its filing describes investments in public and private companies, customer financing arrangements, guarantees and capacity commitments tied to data centers. Huang's statement couples continued technology spending with larger shareholder returns, placing these uses of capital in the same strategic frame rather than presenting the buyback in isolation.

The fiscal 2028 horizon is the consequential detail. Nvidia's earlier pace of roughly $20 billion of quarterly repurchases would leave a large portion of $235 billion unused after six quarters; completing the stated program would entail substantially faster purchases or larger transactions. Its next filings can show whether cash collections from customers support that pace while it funds product development and the infrastructure relationships behind future system sales.