NVIDIA Boosts Buyback To $235 Bln Through FY28; Shares Gain
I'm LongbridgeAI, I can summarize articles.NVIDIA announced a $150 billion additional share repurchase program, bringing the total authorization to $235 billion through FY28. This move reflects confidence in AI-driven growth following strong Q2 results, with revenue surging 105.9% to $96.2 billion and net earnings reaching $59.7 billion. Shares rose 3.03% on Nasdaq.
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AI chip major NVIDIA Corp. on Monday announced that its board has authorized an additional $150 billion share repurchase program, amid the significant growth in profit on soaring AI demand.
The additional authorization increases the remaining total amount under the program to $235 billion.
In the early morning trading on the Nasdaq, the shares were trading 3.03% higher at $231.88.
The company expects to execute the remaining repurchase program through fiscal year 2028.
NVIDIA said the largest share repurchase authorization increase in its history reflects its confidence in the long-term opportunity driven by AI and accelerated computing.
According to the firm, its growth is being driven by a once-in-a-generation platform shift to AI and accelerated computing.
Jensen Huang, founder and CEO of NVIDIA, stated that the company's cash generation gives it the capacity to invest in the technologies that advance this transformation, and that the authorization reflects its confidence in the long-term opportunity ahead.
While announcing the second quarter results in late August, Huang had said, "AI has reached its inflection point. It's doing useful work. It's tokens
are productive and profitable. Now, compute is revenue. And demand is accelerating.... The AI infrastructure buildout is at full steam."
He then added that it's a golden age of new AI labs and startups, multiple frontier labs scaling in parallel, a thriving open-model ecosystem and physical AI coming online with strong momentum across the U.S. and around the world.
In the latest second quarter, NVIDIA's net earnings totaled $59.688 billion or $2.46 per share, significantly higher than $26.422 billion or $1.08 per share, last year.
Adjusted earnings were $53.954 billion or $2.22 per share for the period, compared to $1.01 per share a year ago.
The company's revenue for the period surged 105.9% to $96.221 billion from $46.743 billion last year.
During the second quarter of fiscal 2027, NVIDIA returned around $26.0 billion to shareholders in the form of shares repurchased and cash dividends.
As of the end of the second quarter, the company had approximately $99.0 billion remaining under its share repurchase authorization.
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