Nvidia Spent $20 Billion on Buybacks Last Quarter. Here's What That Means for Your Shares.
The AI chipmaker is ramping up its buybacks, even as its stock sets new all-time highs.
Overview
In the tech sector, stock buybacks are often associated with big, slow-growth companies that are running out of fresh ways to expand their businesses. Instead of "di-worsifying" their businesses through bad investments and acquisitions, these companies prefer to plow their excess cash into buybacks and dividends to boost shareholder value.
Nvidia (NASDAQ: NVDA), the world's top producer of discrete GPUs for the AI market, isn't often associated with big buybacks because its core business is firing on all cylinders. But in its most recent quarter, it spent a whopping $20 billion on buybacks. Let's see why Nvidia is ramping up its buybacks, and if they suggest that slower-growth days are ahead.
Image source: Getty Images.
Details
Source
Originally published at www.fool.com.
Related Articles
- TNT Sports head Luis Silberwasser to depart Skydance as CBS Sports chief David Berson takes over combined global sports group
- Stocks making the biggest moves midday: Microsoft, SpaceX, Vaxcyte, Banco Bradesco, DraftKings & more
- These stocks could benefit from a midterm election shake-up, JPMorgan says