Nvidia announced an additional $150 billion in stock buybacks, causing its pre-market stock price to rise and turn positive.

As AI demand continues to expand, Nvidia is further increasing its efforts to improve shareholder returns. The implementation of the company's large-scale share buyback program also reflects that its strong profitability and cash flow are supporting continued buybacks.

On September 28, Nvidia's board of directors approved an additional $150 billion in stock buyback authorization, marking the largest single increase in the company's buyback authorization in history. This brings Nvidia's remaining stock buyback quota to $235 billion, with plans to complete the buybacks by the end of fiscal year 2028.

Nvidia CEO Jensen Huang stated that the company's growth is being driven by a new wave of platform transformation fueled by AI and accelerated computing. With the continued growth in demand for AI training and inference, demand for Nvidia's high-performance chips remains strong, while expanding profitability and cash flow provide the financial foundation for the company to continue implementing large-scale share buybacks.

Jensen Huang stated that Nvidia's growth stems from "a once-in-a-generation revolution in AI and accelerated computing platforms." This significant increase in share buybacks signifies that while continuously expanding its investment in AI infrastructure, Nvidia is also further enhancing its return on capital.

Following the announcement, Nvidia's stock price initially rose by about 1.7% in pre-market trading, before narrowing its gains to about 1%. During the same period, Nasdaq 100 futures fell by about 0.8%, and S&P 500 futures fell by about 0.4%, indicating that Nvidia's stock performance significantly outperformed the broader market futures.

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