By Tim ShufeltTim Shufelt
Publication Date: 2026-03-29 19:42:00
Key Points
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Nvidia spent $40 billion on share repurchases last fiscal year, which amounts to 33% of its total net income.
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Given the ongoing AI boom, it makes sense for investors to think the business should plow more capital into its operations to capture the opportunity.
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Nvidia is positioned to live and die by the progress and adoption of AI capabilities.
With a market capitalization around $4.1 trillion (as of March 27), Nvidia(NASDAQ: NVDA) is by far the world’s most valuable company. It’s worth $420 billion more than Apple. That difference is roughly equal to the market cap of Chevron.
These are massive numbers we’re talking about. It’s all the direct result of Nvidia shares surging 1,200% in the past five years. The business deservedly gets a lot of praise for its dominant position at the center of the artificial intelligence (AI) boom.
Will AI create the world’s first trillionaire? Our team just released a report on the one little-known company, called an “Indispensable Monopoly” providing the critical technology Nvidia and Intel both need. Continue »
However, investors should still pay attention to the management team’s capital allocation moves. Did Nvidia make a $40 billion mistake in fiscal 2026 (ended Jan. 25)?
Image source: The Motley Fool.
Plowing capital into share buybacks
Nvidia spent just over $40 billion on share buybacks in fiscal 2026. This is not an insignificant sum of money. It’s equal to 33% of the company’s $120 billion in net income, and it’s nearly seven…
