Nvidia, the chip developer at the heart of the artificial intelligence boom, has significantly expanded its share buyback plan by a record US$150 billion. This move reflects chief executive officer Jensen Huang’s strong confidence in the company’s continued growth. Nvidia designs and manufactures graphics processing units (GPUs) essential for advanced computing, underpinning much of the global AI ecosystem. The boost brings the total remaining authorised amount for repurchase to US$235 billion, expected to be completed by the 2027-28 financial year, according to a statement on Monday (Tuesday AEST) from its Santa Clara, California headquarters.
The global rush for sophisticated AI models and infrastructure has propelled demand for Nvidia’s graphics processing units, establishing it as the world’s most valuable company. Despite this, shares have recently appeared cheaper compared to expected profit, indicating market concerns about the sustainability of the AI spending boom. Mr Huang remains steadfast, stating Nvidia’s growth is driven by a “once-in-a-generation platform shift to AI and accelerated computing.” He added the buyback reflects confidence in future opportunities. Shares rose 2.8 per cent to US$231.37 in New York, up 22 per cent this year.
Mr Huang’s early foresight in developing GPUs solidified his influential position. He has worked to allay AI bubble concerns and pushed back against calls for technological slowdown, a view contrasting with other AI leaders like Dario Amodei and Sam Altman. The industry has discussed more carefully paced AI development following breaches. In response, Nvidia also introduced a new AI security system for its hardware on Monday. Comprising two open-source software security tools, it is designed to control real-time access by AI agents, with the company claiming it would have prevented incidents such as the accidental Hugging Face hack.
