Philip
Founder & CEO of Intrinsiqq, Value & Growth Investor
Nvidia's record buyback shows a company confident in its future cash flows. Per a quoted post, Nvidia authorized a $150 billion buyback, the largest single increase in US corporate history, while Jensen Huang called the current cycle the largest infrastructure buildout in human history. x.comÂ
Nvidia is becoming a share cannibal at a $5T market cap as it accelerates buybacks and dividends. Its new $150B buyback brings its total authorization to $235B, the largest ever. x.com x.comÂ
Nvidia's $150 billion buyback is immaterial and cannot provide a floor under the stock. Against a $5 trillion market cap it is about 3% over roughly two years, under 2% a year, whereas Apple's $100 billion buyback came when its market cap was about $900 billion. Stock-based compensation and the size of insider sales over the last year offset it further. Nvidia remains a remarkable company. x.com x.comÂ
Nvidia's stock is too cheap for Jensen Huang to ignore, which is why the company announced the largest stock buyback ever. x.comÂ
Nvidia's buyback increase to $235 billion, the largest in history, should help lift the share price and add significant downside protection. x.comÂ
Nvidia's equity-investment book makes earnings vulnerable to an AI valuation downturn even if GPU sales hold up. Private and public stakes totaled about $99bn, or 31% of assets, in July; gains were $15.9bn in April and $7.8bn in July. Private holdings are marked on observable transactions or impairments, so losses could arrive in lumps. Nvidia generated about $127bn of free cash flow over four quarters, and the filing does not split private stakes by sector. x.com x.comÂ
Nvidia's expanded buyback signals confidence: if no one else buys the stock, Nvidia will. The board added $150 billion of authorization, bringing the remaining total to $235 billion, which Nvidia expects to complete by the end of fiscal 2028, more than 4% of its shares within about a year. The scale of the program reassures the market. x.comÂ
Nvidia's next move is being underestimated while attention is on Meta as the Magnificent Seven all-time-high candidate. Nvidia has increased its record buyback authorization to $235 billion into fiscal 2028, just as the stock breaks out from a year-long range. x.comÂ
Nvidia's $14 billion purchase of Hugging Face deepens a conglomerate discount that has been building. The business may be getting more insulated, but it is also getting harder to understand, which could add to the stock's lack of a multiple premium. This is a caution rather than an outright bearish call. x.comÂ
Nvidia can become the next Apple this decade: a buyback machine while still growing about 50%. Its board added $150 billion to the repurchase program, bringing the total authorization to $235 billion, expected to be executed through fiscal 2028. x.comÂ