Nvidia boosts share buyback program by record $150B – SiliconANGLE

Nvidia Corp. today announced plans to spend an additional $150 billion on share buybacks through January 2028.

The move represents the largest-ever expansion of a stock repurchase program. Furthermore, Nvidia plans to boost its current dividend of $0.25 per share. The company didn’t specify the size or timing of the planned increase.

Nvidia says that the moves are motivated by two main factors. The first is its rapid revenue growth, while the other is the strong performance of its startup investment portfolio. The buybacks will provide another way for shareholders to benefit from its success in those areas.

“Our cash generation gives us the capacity to invest in the technologies that advance this transformation and return capital to shareholders,” said Nvidia Chief Executive Officer Jensen Huang. “This authorization reflects our confidence in the long-term opportunity ahead.”

Nvidia ended its fiscal second quarter with $22.44 billion in cash and cash equivalents. The company’s adjusted profit and revenue, in turn, more than doubled thanks to continued demand for its graphics cards. Nvidia Chief Financial Officer Colette Kress told analysts that the chipmaker expects its sales to increase by another 70% in fiscal 2028. Wall Street was expecting 40%.

Nvidia’s revenue growth is partly fueled by its expanding product lineup. Five years ago, its data center portfolio consisted almost solely of graphics processing units. Today, the company supplies customers with…