The final days of September and the initial days of October are rapidly shaping up to be a particularly good time for Nvidia (NASDAQ: NVDA) stock investors, as they feature both the next dividend payment and, as the company disclosed on Monday, the approval of a record-breaking buyback program.
Specifically, the semiconductor giant revealed on September 28 that its board has authorized a $150 billion purchase of the firm’s equity, increasing the total remaining amount to $235 billion.
Commenting on the decision, Nvidia CEO Jensen Huang reflected on his firm’s position in the artificial intelligence (AI) boom and its staggering cash generation:
NVIDIA’s growth is being driven by a once-in-a-generation platform shift to AI and accelerated computing. Our cash generation gives us the capacity to invest in the technologies that advance this transformation and return capital to shareholders. This authorization reflects our confidence in the long-term opportunity ahead.
Notably, the program is scheduled to be executed through the fiscal year 2028 (FY 2028), which corresponds to most of the calendar year 2027 and the very start of 2028.
Here’s what the Nvidia $150 billion buyback means for NVDA stock
Meanwhile, despite the bull buyback being relatively far in the future, NVDA stock traders reacted immediately to the news, pushing the equity 1.78% higher to $229.08 in the Monday, September 28, pre-market.
The move represents a significant acceleration relative to the most recent regular session – Friday, September 25 – when Nvidia shares rose 0.22% to their latest closing price of $225.07.
This rally is the result of relatively commonplace dynamics in which a share buyback program increases buying pressure while decreasing the float, effectively skewing the balance between supply and demand, thus driving the price higher.
Why the $150 billion Nvidia share buyback might not materialize
Elsewhere, Nvidia’s Monday announcement could eventually have a smaller impact than one might expect given the scale of the authorized trading.
To begin with, the blue-chip chipmaker has been facing criticism in the previous 12 months for what appears to be a tendency not to follow through on non-binding commitments it announces.
The most dramatic example to date came in the form of a supposed $100 billion investment in OpenAI that was, toward the end of 2025, quietly replaced with a far smaller injection.
Similarly, Nvidia announced a $500 billion program to finance AI infrastructure with the help of some of the world’s most established financial institutions. While this initiative has not been dropped by press time, it has also not begun meaningfully materializing.
Crucially, the two most recent major announcements came at a time when the AI ‘boom’ narrative was particularly unstable.
Why the Nvidia $150 billion buyback could be bearish for AI
Earlier this summer, artificial intelligence companies faced significant pushback on their plans to raise prices while the press was running stories indicating that the technology is yet to have a meaningful impact on productivity and profitability.
Last week, Oracle (NYSE: ORCL) issued a force majeure notice regarding its New Mexico data center project, which destabilized the market. It is worth noting that the official company line is that the warning is merely a relatively commonplace precaution.
Following the same thread, some critics of American big tech, such as the popular market analyst on X known as JustDario, have called Nvidia’s ability to actually finance the buyback program into question, since ‘after bailing out 2/3 of AI firms already, Jensen won’t have much of it left.’
Additionally, critical coverage by the prominent skeptic, Ed Zitron, based on an investigation carried out together with The Guardian, indicates that as much as 50% of sold GPUs might have yet to be installed.
If the numbers prove accurate, it would raise significant uncertainty in Nvidia’s ability to
sustain its revenue, let alone increase its sales long-term.
Crucially, the vast majority of the captains of the AI industry remain vocally bullish, and the bearish claims, though worth keeping in mind, are relatively marginal at press time on Monday, September 28.
Featured image via Shutterstock
