Nvidia Just Gave Investors 150 Billion Reasons to Buy the Stock
It's not too late to invest in this high-flying company.
Overview
Nvidia (NASDAQ:NVDA) has crushed broader equities over the past five years thanks to its position in the artificial intelligence (AI) industry. There are plenty of debates on Wall Street over whether the semiconductor specialist can maintain its momentum, with some bears fearing that AI spending may eventually slow, Nvidia’s revenue and earnings growth rates will plummet, and its share price will follow. The bulls have a different view, and recent developments arguably provide them with more reasons -- 150 billion, to be exact -- to remain bullish on the stock. Here's what investors should know.
Image source: The Motley Fool.
Share buybacks are nothing new for Nvidia, but the company has ramped things up significantly this year. At the end of its fiscal 2027 first quarter (which closed on April 26), Nvidia had $38.5 billion remaining under its share repurchase authorization. And in May, the tech leader announced an $80 billion increase to its share repurchase program. Nvidia recently one-upped itself. On Sept. 28, the company announced an additional $150 billion increase to the program -- which Nvidia called the largest share repurchase authorization increase in history -- bringing the total remaining to $235 billion.
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Originally published at www.fool.com.