Nvidia Corp., the chip developer at the heart of the artificial intelligence boom, increased the size of its share buyback plan by a record $150 billion, reflecting Chief Executive Officer Jensen Huang’s confidence in its continued growth.
The boost takes the total remaining authorized amount to $235 billion, and the company expects to complete the program through fiscal 2028, Santa Clara, California-based Nvidia said in a statement on Monday.
The rush to develop AI models and infrastructure has driven demand for Nvidia’s graphics processing units and turned it into the most valuable company in the world. Lately, though, the shares have been getting cheaper compared to Nvidia’s expected profit, reflecting market concerns about the sustainability of the spending boom.
“Nvidia’s growth is being driven by a once-in-a-generation platform shift to AI and accelerated computing,” Huang said in the statement. “This authorization reflects our confidence in the long-term opportunity ahead.”
See more: Why Big Tech’s AI Capex Is Now Outrunning Cash Flow
The shares rose 2.6% to $230.98 at 10:13 a.m. in New York. The stock is up about 24% so far this year.
Huang’s prescient bet on GPUs - originally built for games rendering - has made him influential in the industry. Nvidia’s investments and technology underpin much of the AI ecosystem, and Huang has worked to tamp down concerns about an AI bubble.
He’s also pushed back against calls for a technological slowdown, running counter to the heads of some of the AI companies, including Anthropic PBC CEO Dario Amodei and OpenAI chief Sam Altman. The industry began discussing more carefully paced AI development in the wake of some high-profile breaches caused by their agents, including OpenAI’s accidental hack of Hugging Face.
On Monday, Nvidia also introduced a new AI security system to run on its hardware, that the company said would have prevented the Hugging Face attack. The two open-source software security tools are designed to control what AI agents can access in real time.
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