NVIDIA ADDS $150BN TO SHARE BUYBACK PROGRAMME

Nvidia has authorised an additional $150 billion for its share buyback programme, taking the total to $235 billion, the company said on Monday. Nvidia described the increase as the largest share repurchase authorisation rise in its history. The chip maker expects to complete the remaining buyback programme by fiscal year 2028, according to the company. Chief executive Jensen Huang said Nvidia's growth is being driven by "a once-in-a-generation platform shift to AI and accelerated computing." He added that the company's cash generation allows it to invest in the technologies advancing that shift while returning capital to shareholders.

Nvidia makes chips used widely in artificial intelligence infrastructure, including its Grace Blackwell and Vera Rubin systems, alongside a range of other semiconductors. The company's shares have risen 24% over the past twelve months, according to Nvidia, taking its market capitalisation to $5.42 trillion. Shares were up 1.24% in premarket trading on Monday, the company said. S&P Global Ratings said in August that combined capital expenditure by major hyperscale computing companies is projected to exceed $1.3 trillion by 2027 as firms build out AI data centre infrastructure. Huang said earlier this month that Nvidia would double the number of chips it sells in 2027.

Huang said the expanded buyback authorisation reflects the company's "confidence in the long-term opportunity ahead." The programme is set to run through January 2028, according to the company. Nvidia's position as a leading supplier of AI chips has made it a significant beneficiary of increased spending on AI computing infrastructure by technology companies. The buyback expansion follows continued growth in demand reported by the company for its graphics processing units used in AI systems.