NVIDIA Flexes Its Cash Muscle With Record $150 Billion Buyback Increase

NVIDIA Corp. (NASDAQ:NVDA) stock gained nearly 2% in Monday premarket trading after the board significantly expanded its share repurchase program, giving investors another signal of management’s confidence in the company’s cash generation and long-term AI opportunity.

The gain came despite a softer market backdrop, with S&P 500 futures down 0.5% as rising Treasury yields and higher crude oil prices pressured technology stocks.

Expands Buyback To $235 Billion

NVIDIA’s board authorized another $150 billion for share repurchases, increasing the remaining authorization to $235 billion. The company expects to complete the remaining program through fiscal 2028.

This marks the largest increase to NVIDIA’s share repurchase authorization in the company’s history.

CEO Jensen Huang linked the expanded buyback to NVIDIA’s cash generation and its confidence in what he called a "platform shift to AI and accelerated computing."

The move gives NVIDIA additional flexibility to return capital to shareholders while the company continues investing in its expanding AI business.

Builds AI Agent Security Business

Separately, NVIDIA also introduced its Open Agent Safety Platform, which lets companies control autonomous AI agents, monitor their actions and stop them when they move outside approved boundaries.

The platform includes OpenShell, which controls how agents perform tasks, and Sentry, which independently monitors activity and can isolate an agent within milliseconds if it violates established rules.

"AI’s extraordinary potential for society will only be realized if we solve AI safety," Huang said.

More than 100 organizations are working with NVIDIA’s agent-safety technologies. Anthropic is combining Claude Managed Agents with NVIDIA’s tools, Salesforce integrated OpenShell with Slack, and SAP is incorporating the technology into its business AI platform.

Huang Sees AI Infrastructure Demand Accelerating

Huang separately said AI computing demand continues to strengthen as companies build NVIDIA-powered infrastructure and AI becomes more useful.

He estimated that a 1-gigawatt NVIDIA AI facility costs about $50 billion to $60 billion to build but can generate about $50 billion in annual rental revenue under current market conditions.

Huang said token generation has increased 25-fold in less than a year, while open models now produce nearly 70% of generated tokens, up from about 30%.

He also expects AI safety testing to become another major computing workload alongside training and inference, potentially creating additional data-center demand.

Huang said Grace Blackwell systems can rent for about $16 per GPU hour, compared with roughly $5 under some contracts signed a year earlier. He expects higher rental prices to improve cloud providers’ revenue forecasts and encourage additional infrastructure investment, creating a flywheel that is "really, really flying."

NVIDIA Analyst Outlook

NVIDIA carries a Buy consensus rating with an average price target of $348.22.

Piper Sandler initiated coverage with an Overweight rating and $300 target on Sept. 10. Rosenblatt maintained a Buy rating and $390 target on Sept. 4, while Needham maintained a Buy rating and $300 target the same day.

NVIDIA Top ETF Exposure

The Goldman Sachs ActiveBeta US Large Cap Equity ETF (NYSE:GSLC) holds a 9.83% weight in NVIDIA, the Pacer Data and Digital Revolution ETF (NYSE:TRFK) holds 9.92%, and the Franklin Focused Dynamic Growth ETF (NASDAQ:FFOG) holds 9.88%.

Significant inflows or outflows from these funds can translate into buying or selling of NVIDIA shares.

NVIDIA Price Action

NVDA Stock Price Activity: NVIDIA shares were up 1.58% at $228.58 during premarket trading on Monday, according to Benzinga Pro data.

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