GoKawiilNvidia authorizes additional $150 billion in stock buybacks
Nvidia announced a new $150 billion share repurchase authorization on Monday, adding to the $80 billion buyback plan it revealed in May alongside a dividend increase to 25 cents per share from 1 cent. The move comes as Nvidia's forward price-to-earnings ratio has fallen to 14.5, well below its five-year average of 62.9, even as analysts project net income near $385 billion in fiscal 2028.
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Analysts such as Karan Ramchandani of Post Oak Group describe the buyback as a signal that Nvidia's management views its own shares as undervalued relative to expected earnings growth. The scale of repurchases suggests Nvidia sees stock buybacks as a strong use of its cash amid surging AI-driven profits, though the market's reaction will determine whether investors agree with that valuation view.
- Nvidia added a $150 billion buyback authorization on top of May's $80 billion plan.
- Its forward P/E of 14.5 is far below its five-year average of 62.9, near a decade low.
- Analysts project Nvidia's net income could reach roughly $385 billion in fiscal 2028.
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Published there as: “Nvidia's record buyback shows chipmaker's stock is too cheap for CEO Huang to resist”
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