Nvidia Board Approves $150 Billion Buyback Increase as Shares Rise in Premarket Trading

Nvidia's board of directors has authorized a $150 billion increase to the company's share-repurchase program, the company disclosed Monday, according to Seeking Alpha. The chipmaker said it would draw on its balance sheet to fund the purchases. Shares rose 1.2% in premarket trading following the news, Seeking Alpha reported.

A Fresh Vote of Confidence From the Board

The $150 billion figure is the latest expansion of a repurchase program Nvidia has enlarged more than once as its cash generation has grown alongside demand for its AI chips. Seeking Alpha's report did not detail how much remained under Nvidia's prior authorization at the time of this latest increase, so the total repurchasing capacity now available to the company is not clear from the announcement as reported.

Building on an Already Aggressive Buyback Push

The new authorization follows an earlier $80 billion buyback increase that Nvidia announced alongside its fiscal first-quarter results, according to Shacknews and Yahoo Finance. At the end of that fiscal first quarter, which ended April 26, 2026, Nvidia had $38.5 billion remaining under its existing repurchase authorization, Shacknews reported. The $80 billion increase stacked on top of that balance, giving the company roughly $118 billion in repurchasing power with no expiration, according to Yahoo Finance's reporting at the time.

Nvidia's capital returns had already reached record levels before that announcement. In fiscal Q1 2027, the company returned approximately $20.0 billion to shareholders through share repurchases and cash dividends combined, a figure Nvidia itself described as a record level, per Shacknews and Yahoo Finance. Free cash flow for that quarter reached $48.6 billion, nearly double the $26.1 billion generated in the same period a year earlier, Yahoo Finance reported. Management has said it intends to return about half of its free cash flow to shareholders this year, a pace the fiscal first quarter nearly matched, according to Yahoo Finance.

Nvidia chief financial officer Colette Kress addressed the pace of returns directly on the fiscal first-quarter earnings call, saying, "We returned a record $20 billion to our shareholders while executing strategic investments, both upstream supply chain and downstream go to market ecosystem," as quoted by Yahoo Finance.

Alongside the earlier buyback increase, Nvidia also raised its quarterly cash dividend to $0.25 per share from $0.01, payable June 26, 2026 to shareholders of record as of June 4, 2026, according to Shacknews. CNBC separately reported the increase to 25 cents per share from 1 cent.

Revenue Growth and the China Overhang

The capital-return expansion has come against a backdrop of rapid revenue growth. Nvidia's fiscal first-quarter revenue totaled $81.6 billion, up 85% year over year, with data center revenue climbing 92% to $75.2 billion, Yahoo Finance and Money Morning both reported. By our calculation, everything outside the data-center segment accounted for roughly $6.4 billion of that total ($81.6 billion minus $75.2 billion), equal to about 8.5% of the data-center figure ($6.4 billion divided by $75.2 billion, multiplied by 100). That arithmetic is an interpretation of the reported figures rather than a forecast, but it illustrates how concentrated Nvidia's revenue base has become in a single segment.

Nvidia guided to roughly $91 billion in revenue for the following quarter, a level Yahoo Finance said would mark a further acceleration. China, however, remains a drag on the business. Nvidia shipped no data center chips to China last quarter, down from $4.6 billion a year earlier, and its outlook assumes no data center compute revenue from China in the current quarter, per Yahoo Finance. Motley Fool contributor Daniel Sparks, writing in the same Yahoo Finance piece, noted that Nvidia CEO Jensen Huang has said the company has "largely conceded" the Chinese AI chip market to domestic rival Huawei.

How Analysts Have Framed the Buybacks

Commentary following the earlier $80 billion authorization offered a window into how some observers read Nvidia's buyback strategy. Money Morning estimated that, at a stock price of $215 per share, an $80 billion buyback would retire approximately 372 million shares, or about 1.5% of shares outstanding over the life of the program. The outlet argued that companies typically authorize large buybacks when they believe shares are undervalued relative to earning power, though it characterized the percentage impact as modest and said the signal mattered more than the math.

At the time of that reporting, Nvidia stock had closed at $214.75, up roughly 13% year-to-date, according to Money Morning. Yahoo Finance separately noted that the shares slipped after the fiscal first-quarter report and drifted to around $215 in the following days, even with record results and larger payouts. Neither figure reflects trading after Monday's $150 billion authorization, beyond the reported 1.2% premarket move.

Bottom Line

Nvidia's board has now authorized a $150 billion increase to its buyback program, the latest step in a pattern of escalating capital returns that has accompanied the company's rapid revenue growth and heavy free-cash-flow generation, per the reporting cited above. The move drew an immediate, modest positive reaction in premarket trading, while two open questions remain: the company's total repurchasing capacity after this increase, and how long China stays absent from its data center revenue base.