Nvidia Unveils $150 Billion Buyback as Stock Trades at a Discount

Nvidia’s board of directors has authorized an additional $150 billion for stock buybacks, a move widely interpreted as a signal that the semiconductor giant believes its shares are trading below their intrinsic value.

This latest authorization brings the total repurchase capacity to $235 billion, with transactions scheduled to occur between now and January 2028. According to Philip van Doorn, who writes the Deep Dive column for MarketWatch, the scale of the buyback program underscores management’s conviction that the stock is a bargain, even as the company maintains robust growth trajectories.

Despite the aggressive capital return strategy, Nvidia remains the world’s largest company by market capitalization, currently valued at $5.42 trillion. Van Doorn notes that the company now trades at a relatively low price-to-earnings multiple relative to its growth metrics, further supporting the argument that shares are in bargain territory.

The announcement coincides with broader market activity, where the Nasdaq Composite dipped 0.57% and the S&P 500 fell 0.49% on the day of publication. Nvidia shares themselves rose 2.63% following the news.