Nvidia says it added $150 billion to its stock buyback authorization on September 28, 2026, bringing the remaining amount approved for repurchases to $235 billion. The company describes the increase as the largest in history and expects to carry out the remaining program through fiscal 2028.
That is a substantial expression of confidence in the business behind the AI boom. But the size of the authorization leaves the central question open: can Nvidia keep generating enough cash to fund large repurchases while continuing to invest in its technology?
CEO Jensen Huang argues that it can. He attributes Nvidia’s growth to the shift toward AI and accelerated computing, and says its cash generation gives the company room to invest and return money to shareholders.
A buyback does not settle the valuation question
A repurchase plan can be read as management expressing confidence in its shares. It cannot, by itself, establish that those shares are cheap. The price Nvidia pays and the earnings it ultimately delivers will matter more than the headline authorization.
At the time of the announcement, LSEG’s estimates put Nvidia at roughly 16.5 times expected earnings over the following 12 months. That estimate was near its lowest level since 2015 and below its 15-year average of about 30.
The apparent discount needs context. Forward earnings multiples depend on forecasts: if expected profits change, so does the valuation argument. A lower multiple can reflect stronger earnings expectations, doubts about how long growth will last, or both. It is a starting point for assessing the stock, rather than a conclusion.
The plan depends on cash still to come
Nvidia’s reported results help explain management’s confidence. The company reported revenue of $96.22 billion for the quarter ended July 26, 2026, more than double the year-earlier figure. Its outlook for the following quarter called for revenue of about $108 billion.
Nvidia also reported $22.44 billion in cash and cash equivalents at the end of July. That figure is one part of its balance sheet, rather than a measure of every financial resource available to it. Still, the remaining buyback authorization is far larger, making future cash generation central to the plan.
The fiscal 2028 timetable gives the program a longer horizon than a single earnings cycle. It remains an expectation, and the authorization should not be confused with money already spent. The amount and pace of completed purchases will determine how much capital reaches selling shareholders.
Customers’ spending plans remain critical
The business case rests partly on investment decisions made outside Nvidia. In August 2026, S&P Global Ratings projected that combined hyperscaler capital spending would exceed $1.3 trillion by 2027.
That forecast suggests substantial demand for AI infrastructure, though it is not a guarantee of orders for Nvidia. Cloud companies’ willingness to keep expanding their data centers remains an important condition for the chipmaker’s growth.
If those customers slow investment, Nvidia could face pressure on both chip demand and the cash available for repurchases. A buyback authorization cannot insulate the business from that possibility.
The share count matters, too
Repurchase spending also needs to be considered alongside shares issued to employees. Some buybacks can offset that issuance, so a large dollar amount does not necessarily translate into an equally dramatic reduction in outstanding shares.
Huang’s position is that investment and shareholder returns can coexist. The practical test is whether Nvidia can sustain both as customer demand evolves.
For shareholders, the lasting significance of the program will emerge in cash generation, completed purchases and changes in the share count. Nvidia has set out an ambitious plan. Its customers’ future orders will help determine how far it can follow through.