NVDA stock got a fresh catalyst on September 28, 2026. On September 28, 2026, Nvidia announced that its board had approved an additional $150 billion for the company’s share repurchase program.
This marked the largest increase in a buyback authorization in history. As a result, the total remaining amount available for repurchases now stands at $235 billion, and the company expects to utilize this over the next fiscal year, which ends in 2028. While the number $150 billion caught the attention of many, this guide provides a deeper understanding of the authorization, how it compares to Nvidia’s past actions, and the potential risks that come with this significant move.
NVDA Stock and the $150 Billion Buyback: Essential Details
Nvidia has increased its existing share repurchase authorization by $150 billion, raising the total remaining authorization to $235 billion, which is expected to be used by fiscal year 2028. Here are the numbers behind the NVDA stock buyback in one place.
Here is a summary of the key points:
- Announcement Date: September 28, 2026
- Increase in Authorization: $150 billion
- Total Remaining Authorization: $235 billion
- Expected Duration: Through fiscal year 2028
- Market Cap (CNBC): Approximately $5.42 trillion
- Record Increase: Apple’s $110 billion, announced in 2024
CEO Jensen Huang explained the move as part of a once-in-a-generation shift toward AI and accelerated computing. He emphasized that the company’s strong cash flow allows it to both invest in growth and return value to shareholders simultaneously.
Understanding Buyback Authorization
When a company authorizes a share repurchase, it is not a guarantee that all the money will be spent.Instead, it is a permission to spend up to a certain amount. According to filings, the program does not require Nvidia to buy a specific number of shares, and it can be paused at any time. Therefore, the $235 billion is the maximum amount that can be spent, not the total amount already used.
How This Buyback Stacks Up Against Nvidia’s History
The latest authorization is a major shift, even compared to recent actions by Nvidia. The scale of the program has rapidly increased over the past few years:
- – November 2016: $2 billion
- – November 2018: $7 billion
- – August 2023: $25 billion
- – August 2024: $50 billion
- – September 2026: $150 billion
The 2026 increase is three times the 2024 amount and exceeds Apple’s previous record of $110 billion.
NVDA STOCK Buyback: Authorization Versus Actual Spending
It is important to note that there is a difference between authorizing a buyback and actually spending the money.
In fiscal 2026, Nvidia spent $40.1 billion on repurchases. In the second quarter of fiscal 2027, it repurchased about $20 billion of stock and paid around $6 billion in dividends, totaling a record $26 billion in a single quarter. This $20 billion quarter serves as a baseline. Approving $235 billion is straightforward, but spending it will take several years.
Why Nvidia Can Afford It: The Cash Engine Behind NVDA Stock
Nvidia has the financial resources to support such a large buyback because its profits have grown significantly.
In the quarter ending July 26, 2026, the company reported revenue of $96.2 billion, a 106% increase compared to the same period in the previous year. Data Center revenue reached $89.0 billion, and the gross margin remained at 75.0%. GAAP net income was $59.7 billion.
Management remains optimistic about the durability of this demand, with guidance for roughly 70% revenue growth in fiscal 2028. They project about $108 billion in revenue next quarter without assuming any sales in China’s data center segment. S&P Global Ratings forecasts combined hyperscaler capital spending to exceed $1.3 trillion by 2027, which is expected to drive further demand for Nvidia’s products. “Smaller firms feel this demand too, from logistics to retail, as more companies invest in AI in logistics and other tools.”
What a $235 Billion Buyback Could Mean for Shareholders
Two simple calculations help illustrate the impact of the authorization on a shareholder:
1. Pace of Spending: Fiscal 2028 ends in late January 2028, giving Nvidia roughly six quarters to execute the program. Spreading $235 billion evenly would result in about $39 billion per quarter, nearly double the $20 billion repurchased in the previous quarter. If the company continues at this pace, it is unlikely to exhaust the program by 2028, making the authorization more of a long-term opportunity than a strict deadline.
2. Impact on Share Count: Here is what this means for an NVDA STOCK shareholder. The $235 billion is approximately 4.3% of Nvidia’s $5.42 trillion market cap. If the stock price remained stable, the buyback would reduce the number of outstanding shares by about 4.3%, which would increase earnings per share by a similar amount. However, in reality, the stock price fluctuates, and the company issues new shares to employees, so the actual reduction in shares would be less.
This second point is particularly important for understanding the real-world effect of the buyback.
Nvidia has announced a new program aimed at reducing the impact of share dilution caused by employee stock.This means that part of the money spent on buybacks is used to maintain the number of shares outstanding.
How the Market Reacted
Initially, investors responded positively.
Investors liked the news, and NVDA STOCK rose at first. Reuters reported NVDA up 1.7% in premarket trading, and CNBC later reported the stock up 3.4% on Monday. Over the past year, shares have increased by approximately 24%, as reported by CNBC.
However, one caution: stock price spikes following buyback announcements often fade quickly. Nvidia’s stock movements around earnings reports have frequently been negative, even after strong financial results. The announcement shows confidence but does not change the company’s earnings.
The Risks Behind the NVDA STOCK Buyback Headline
While the buyback appears solid compared to Nvidia’s $96 billion quarterly revenue, there are a few points to consider before viewing it as entirely positive news.
Free Cash Flow Is Not Growing in a Straight Line
A Yahoo Finance analysis of the most recent earnings report noted that free cash flow decreased by about $27 billion compared to the previous quarter due to working capital absorbing cash.
Nvidia has extended payment terms to major customers, increasing days sales outstanding from 45 to 60 days. According to Midgard Finance, Q2 free cash flow was $21.4 billion, which is roughly in line with the $20 billion spent on repurchases. Buybacks closely funded from free cash flow leave little room for flexibility if receivables continue to grow.
Circular Financing Questions
Nvidia has been investing in AI startups and cloud service providers, and some investors have questioned whether this funding indirectly supports demand for its own chips, as noted by Calcalist.
According to Midgard Finance, Nvidia’s supply commitments have increased to about $279 billion. Large obligations combined with significant buybacks raise concerns about the cost of a potential slowdown in demand.
Smaller Frictions
Taxes: A 1% federal excise tax applies to net repurchases, though Nvidia has stated that the effect so far has been immaterial.
China: Guidance excludes China Data Center compute, so any changes in export rules could significantly impact results.
Flexibility: Buybacks can be paused.
They represent a sign of intent rather than a binding contract.
Should You Buy NVDA Stock After This Announcement?
This is general information, not financial advice, and only you can evaluate it against your own goals. Long-term holders of NVDA STOCK should track real repurchase dollars, not just the announcement.
What the buyback tells you is that management believes shares are worth owning at a value of more than $5 trillion and has the cash to act. What it does not tell you is whether the current price already reflects that confidence.
Watch three things in the coming quarters:
1. The actual amount spent on repurchases in each earnings report, not just the authorization headline.
2. Free cash flow compared to repurchases and dividends.
3. Days sales outstanding, as an early indicator of stretched customer conditions.
A buyback pace that continues to rise while cash flow keeps up is healthy. A pace that outpaces cash flow should be examined more closely.
Frequently Asked Questions About the Nvidia Buyback
How much is Nvidia’s new share buyback?
Nvidia added $150 billion to its repurchase authorization on September 28, 2026, bringing the total remaining amount to $235 billion.
When will Nvidia complete the buyback?
Nvidia expects to execute the remaining program through fiscal year 2028, which ends in late January 2028. This is an expectation, not a guarantee.
Does a buyback make NVDA stock go up?
Not automatically. Buybacks reduce the number of shares outstanding and can improve earnings per share, but the stock price still depends on earnings growth and investor sentiment.
Is this the biggest NVDA STOCK buyback in history?
Nvidia describes the $150 billion as the largest increase in buyback authorization on record. It exceeds Apple’s $110 billion increase in 2024.
Does Nvidia pay a dividend too?
Yes. Nvidia paid about $6 billion in dividends in the second quarter of fiscal 2027, in addition to about $20 billion in repurchases.
