By Daniel Foelber
Publication Date: 2026-10-02 11:00:00
On Sept. 28, Nvidia (NVDA +1.09%) authorized a $150 billion increase to its share repurchase program, bringing the total to $235 billion. The new program is larger than Apple‘s (AAPL -0.81%) $100 billion additional authorization — announced on April 30.
Nvidia is now on track to surpass Apple in buybacks and dividends, a prediction I made in mid-September. Here’s what the buyback increase means for Nvidia investors, why Nvidia and Apple’s investment thesis have a core similarity, and which growth stock is the better buy now.
Image source: Nvidia.
AI is contributing to Nvidia and Apple’s cash flow
Nvidia is providing the chips and networking needed to fuel increased AI compute demand. In contrast, Apple’s devices and services provide how many consumers, students, and enterprises will interact with AI tools. Because of their positioning along the AI value chain, both companies benefit immensely from AI spending.
By comparison, hyperscalers like Alphabet, Microsoft, and Amazon are draining their FCF as they spend heavily on AI. Anthropic and OpenAI depend on Apple as the touchpoint by which many users interact with their frontier models.
As AI use cases and overall compute demand increase, Nvidia and Apple won’t be pressured to shell out record capital expenditures. Instead, they are well-positioned to convert AI-driven revenue into FCF, which fuels buybacks and dividends.
Apple tends to have the largest buyback program among U.S. companies. In its latest quarter, which…
