Nvidia Bets $150 Billion on Its Own Shares as AI Chip Race Intensifies

Nvidia is making its biggest-ever bet on its own stock, authorising an additional $150 billion for share buybacks as the artificial intelligence chipmaker faces growing competition and a stock performance that has increasingly lagged some of its technology rivals.

The new authorisation takes Nvidia’s remaining share-repurchase capacity to approximately $235 billion, which the company expects to deploy through fiscal 2028. The scale of the programme eclipses Apple’s $110 billion buyback authorisation announced in 2024 and represents a striking vote of confidence from Nvidia’s leadership in the company’s long-term prospects.

Nvidia shares rose more than 2% following the announcement. Yet the company’s stock has gained just over 20% this year through Friday, roughly matching the Nasdaq 100 but falling well behind several semiconductor competitors. AMD shares have more than doubled, while Intel’s stock has more than tripled over the same period.

The divergence comes as the AI chip market becomes increasingly competitive. Nvidia remains one of the dominant suppliers of the advanced processors powering artificial intelligence systems, but rivals are investing heavily to challenge its position as technology companies pour enormous sums into AI infrastructure.

Despite the growing competition, Nvidia’s financial position gives it considerable room to return capital to shareholders. The company ended its July quarter with $22.44 billion in cash and cash equivalents, providing a substantial financial cushion as it continues investing in the next generation of AI technology.

The buyback also comes as Nvidia’s valuation has become less demanding by historical standards. Its forward earnings multiple stands at around 16.5, according to LSEG data, its lowest level since January 2015.

For investors, the move carries two messages. Nvidia is signalling that its leadership sees significant long-term value in the company, while simultaneously acknowledging that the market is becoming more demanding as competition across the AI semiconductor industry intensifies.

The decision arrives at a pivotal moment for the AI boom. Demand for computing power remains enormous, but investors are increasingly watching whether the extraordinary spending on artificial intelligence will translate into sustainable profits.

Nvidia’s massive buyback therefore represents more than a financial transaction. It is a powerful statement about where the company believes its future lies as the AI industry enters a more competitive phase and the race to dominate the technology powering the next generation of computing accelerates.