NVIDIA has approved an increase in its stock repurchase plan by a record $150 billion, giving this AI chip manufacturer one of the largest repurchase “buffers” in history.

The new authorization has increased NVIDIA's remaining share repurchase quota to $235 billion, and the company expects to utilize this quota throughout the fiscal year 2028. NVIDIA stated that this represents the largest increase in share repurchase authorization in its history.

This move also adds another layer to NVIDIA's story: while the company is making substantial investments in AI infrastructure, it is also generating enough cash to return tens of billions of dollars to its shareholders.

NVIDIA's repurchase scale exceeds that of most S&P 500 companies

Even by the standards of large technology companies, this scale is quite rare.

Reuters pointed out that this single increase of $150 billion exceeds the market value of about 84% of the companies in the S&P 500 index. After the announcement, NVIDIA's stock price rose by more than 2%, but then it gave back some of that gain under broader market pressure.

NVIDIA has repurchased $39.8 billion in shares in the first half of the fiscal year 2027, with an additional $6.3 billion used for dividends.

While returning cash to shareholders, the company's operational growth has also been extremely strong. In the second quarter of fiscal year 2027, revenue reached $96.2 billion, a year-on-year increase of 106%; revenue from the data center business grew by 117% to $89 billion.

These achievements helped drive the stock price of NVDA to rise recently, after another set of financial reports that significantly exceeded expectations.

NVIDIA spends money on one hand, and offers cashbacks on the other.

This repurchase is particularly noteworthy, as NVIDIA is also contributing to the funding for the construction of a broader AI.

The company is collaborating with major financial institutions to mobilize over $500 billion for the AI infrastructure, yet lending institutions remain cautious about using GPU as a long-term collateral. The scrutiny from Wall Street regarding NVIDIA's $50 billion financing initiative reflects this tension.