History Says Nvidia's Record $150 Billion Buyback Is Good News for the Stock
Past buybacks at Apple and at the chipmaker itself usually came before market-beating years. But was the buyback the reason?
Overview
Nvidia (NASDAQ:NVDA) said on Monday, Sept. 28, that its board added $150 billion to the company's share repurchase authorization, taking the amount left to $235 billion. The chipmaker called it the biggest boost to a buyback authorization in history. It beats the $110 billion Apple (NASDAQ:AAPL) approved in 2024.
Investors liked the news. Shares gained about 2% on Monday as I write, trading near $230.
Details
And history suggests they might have reason to. Apple's biggest buyback authorizations from 2018 through 2025 and Nvidia's own increases from 2023 through 2025 were each followed by a gain in the stock over the next 12 months. In eight of these nine cases, the stock beat the S&P 500 (SNPINDEX:^GSPC).
Source
Originally published at www.fool.com.