Nvidia has increased its stock buyback program by a record $150 billion, which experts say reflects CEO Jensen Huang’s confidence in the company’s continued growth. The expansion of the repurchase program brings the total remaining authorization to $235 billion. The company said it expects to complete the plan in fiscal 2028.
Image source: NVIDIA
A boom in the development of artificial intelligence models and infrastructure has fueled demand for Nvidia’s GPUs, making it the most valuable company in the world. However, recently stocks not growing fast enough Relative to Nvidia’s expected earnings, it reflects market concerns about the sustainability of this explosive growth.
Huang’s shrewd bets on GPUs originally designed for gaming have made him an influential figure in the industry. Nvidia’s investments and technology underpin much of the artificial intelligence ecosystem, and Huang is working to dispel concerns about an artificial intelligence bubble. “NVIDIA’s growth is driven by an unprecedented shift in artificial intelligence and accelerated computing platforms.” Huang said. — This approval reflects our confidence in our long-term prospects. “
He also rejected calls for the technology to slow down, contradicting the views of some AI executives, including Anthropic CEO Dario Amodei and OpenAI CEO Sam Altman. Following several high-profile hacks involving artificial intelligence agents, there is growing talk in the industry of slowing the pace of artificial intelligence development. Nvidia, in turn, has launched a new AI security system for its devices, designed to instantly control access to AI agents.
Nvidia shares rose 2.6% to $230.98 in today’s trading following reports of an increase in buyback plans. The stock has gained about 24% since the beginning of the year.
If you find an error, select it with your mouse and press CTRL+ENTER.
