Real money signals confidence in growth! NVIDIA Corporation (NVDA.US) adds a record $150 billion to its stock buyback program.

At the center of the artificial intelligence (AI) boom, chip giant NVIDIA Corporation (NVDA.US) has added a record $150 billion to its stock buyback program, reflecting CEO Jensen Huang's confidence in the company's continued growth. NVIDIA Corporation's $150 billion authorization breaks the previous record for the largest U.S. corporate buyback, the $110 billion set by Apple Inc. (AAPL.US) in 2024. As of press time, NVIDIA Corporation rose more than 3% in early U.S. trading on Monday. NVIDIA Corporation said in a statement on Monday that its board approved an additional $150 billion in buyback capacity on top of its existing stock repurchase program, raising the total remaining authorization to $235 billion. The company expects to complete the entire remaining buyback capacity within fiscal 2028. NVIDIA Corporation founder and CEO Jensen Huang said: "NVIDIA Corporation's growth stems from a once-in-a-century platform shift, namely the wave of artificial intelligence and accelerated computing. Abundant cash flow gives us the ability to invest in technology research and development, drive this transformation, and return capital to shareholders. This additional authorization reflects our confidence in our long-term growth opportunities." The boom in developing AI models and infrastructure has driven demand for NVIDIA Corporation's graphics processing units (GPUs), making it the world's most valuable company. However, amid market concerns about the sustainability of this spending boom, AI stocks, including NVIDIA Corporation, have come under persistent pressure recently. Typically, a large-scale buyback authorization indicates that company management believes its shares are undervalued, but it is often also associated with large, mature companies facing slowing growth. For example, when Apple Inc. set its buyback record, growth in its iPhone business was slowing, and it relied mainly on its dominance in the smartphone market to generate profits. NVIDIA Corporation's trajectory, however, stands in sharp contrast. Data previously released by NVIDIA Corporation showed that its second fiscal quarter revenue reached $96.221 billion, up 106% year over year and 18% quarter over quarter; under GAAP, NVIDIA Corporation's second fiscal quarter net profit was $59.688 billion, up 126% year over year; diluted earnings per share were $2.46; and gross margin was 75.0%, up about 2.6 percentage points from the same period last year. NVIDIA Corporation expects revenue and net profit to jump 90% and 99%, respectively, in fiscal 2027 ending in January next year. NVIDIA Corporation also expects sales to grow 70% in fiscal 2028, far exceeding analysts' previous estimate of about 45%. This shows that while NVIDIA Corporation is implementing massive shareholder returns, its fundamentals remain in a stage of rapid expansion. In addition, NVIDIA Corporation's stock price rose about 20% in 2026, a gain that dwarfs those of other semiconductor manufacturers. The disconnect between NVIDIA Corporation's strong fundamentals and its stock valuation prompted CEO Jensen Huang to declare that NVIDIA Corporation is "the world's first and only growth value stock." At a Goldman Sachs Group, Inc. technology conference earlier this month, he said the company is "severely misunderstood." He said: "We are not only growing, we are also continuously expanding market share."