Nvidia on Monday authorized a new $150 billion share repurchase, the largest single buyback increase in corporate history. The move lifts the company's total repurchase authorization to $235 billion, and shares rose about 1.4% to $230.40.
CEO Jensen Huang said growth is being driven by "a once-in-a-generation platform shift to AI and accelerated computing," and that strong cash generation lets Nvidia both invest in technology and return money to shareholders.
The timing follows a compression in valuation: Nvidia trades at a forward price-to-earnings ratio of about 24x, close to the S&P 500's roughly 20x, despite being one of the fastest-growing large companies in the US.