Prediction: Nvidia Stock Will Double After This Historic $150 Billion Move
Nvidia's massive share repurchase authorization indicates that the stock is undervalued.
Overview
Artificial intelligence (AI) pioneer Nvidia (NASDAQ:NVDA) has just announced that it will increase its share repurchase authorization by a whopping $150 billion, taking its total remaining authorization under the ongoing program (which will end in fiscal 2028) to $235 billion.
Nvidia management notes that this is the largest increase in share buyback authorization in history. Founder and CEO Jensen Huang pointed out that the company's cash-generation capacity has put it in a solid position to return capital to shareholders, adding that the historical increase in the share buyback program "reflects our confidence in the long-term opportunity ahead."
Details
Let's look at the reasons why Nvidia may have made this historic move, and check what it means for this high-flying AI stock.
Source
Originally published at www.fool.com.