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Nvidia adds record $150B to buyback program, plans dividend increase

Nvidia adds a record $150 billion to its share buyback program through January 2028 and plans to raise its dividend.

AI News Feed · 2026-09-29 09:14

The company's current dividend is $0.25 per share, and it did not specify the size or timing of the increase. Nvidia said the buyback and the dividend plan were motivated by its rapid revenue growth and by the performance of its startup investment portfolio, and that the repurchases will give shareholders another way to benefit from its success in those areas, according to a SiliconANGLE report.

"Our cash generation gives us the capacity to invest in the technologies that advance this transformation and return capital to shareholders," Chief Executive Officer Jensen Huang said. "This authorization reflects our confidence in the long-term opportunity ahead."

Nvidia ended its fiscal second quarter with $22.44 billion in cash and cash equivalents. Adjusted profit and revenue more than doubled on continued demand for its graphics cards. Chief Financial Officer Colette Kress told analysts the chipmaker expects its sales to increase by another 70% in fiscal 2028, while Wall Street was expecting 40%.

Revenue growth is partly fueled by an expanding product lineup. Five years ago the company's data center portfolio consisted almost solely of graphics processing units; today Nvidia supplies customers with GPUs as well as central processing units, networking gear and a range of other products. In a presentation, the company said it generates $40 billion in revenue for every gigawatt of data center capacity built by customers, four times the level of 2022. It said revenue per gigawatt will top $60 billion once its next-generation Feynman series of GPUs launches in 2028.

The second reason for the buyback expansion is the investment portfolio. Nvidia disclosed stakes in 13 public companies and 229 private startups, and said its exits have provided a more than threefold return on investment. The upcoming initial public offerings of Anthropic PBC and OpenAI Group PBC are set to deliver another windfall for the chipmaker.

Nvidia committed $10 billion to Anthropic last November; the AI provider had received a $183 billion valuation two months earlier and is now reportedly gearing up to go public at a $2 trillion valuation. OpenAI raised $30 billion from Nvidia in a February deal that valued it at $730 billion, and the ChatGPT developer's IPO could push its shares higher, further boosting Nvidia's return.

Editor's Summary

Nvidia authorized an additional $150 billion in share buybacks through January 2028, the largest expansion of a repurchase program on record, and said it will raise its $0.25 per-share dividend without giving the size or timing. The company cited doubled profit and revenue, an expected 70% sales increase in fiscal 2028, and gains on stakes in 13 public companies and 229 private startups including Anthropic and OpenAI.