By Kif Leswing
Publication Date: 2026-09-29 11:00:00
NVIDIA CEO Jensen Huang speaks during the G20 Innovation Ministerial on September 2, 2026 in Chapel Hill, North Carolina.
Sean Rayford | Getty Images
When Nvidia announced a record stock buyback on Monday, the chipmaker’s share price was, by one key metric, at its cheapest level in a decade. CEO Jensen Huang saw it as a bargain.
Nvidia’s price-to-earnings ratio for fiscal 2028, which begins this coming February, sits at just 14.5, below all of its megacap peers other than Micron. Its average current P/E ratio over the past five years is 62.9, more than double where it is today.
The constricted multiples for the world’s most valuable company, now valued at over $5.5 trillion, reflect the sustained historic rate of profitability growth for the chipmaker powering the artificial intelligence boom. The stock is up 23% this year, topping the Nasdaq, but it’s not keeping up with expected earnings growth.
Analysts on average expect Nvidia to hit net income of close to $385 billion in fiscal 2028, up 60% from the prior year and more than fivefold over a three-year stretch.
So on Monday, Nvidia said it’s authorized an additional $150 billion to its share buyback program. That’s on top of an $80 billion repurchase plan announced in May, when the company also boosted its quarterly cash dividend to 25 cents per share from 1 cent.
The latest buyback is a “clear-cut message” that management thinks its stock is undervalued, said Karan Ramchandani, managing director at Post Oak Group, in…
