Nvidia to hand investors record $150bn after AI profit boom
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Nvidia to hand investors record $150bn after AI profit boom James Titcomb Mon, 28 September 2026 at 9:40 am GMT-4 3 min read NVDA ^FTSE AAPL Nvidia has revealed plans to hand investors $150bn (£113bn) in the biggest share buyback in history. Jensen Huang, the chipmaker's chief executive, said Nvidia's board had approved the record-breaking increase to its buyback programme, financed by the fruits of the AI boom. Nvidia is the world's biggest company with a valuation of $5.4tn. Shares rose by almost 2pc in pre-market trading on Monday after the buyback was announced. Buybacks involve companies purchasing large numbers of their own shares on the open market. They also act as an effective payout to all investors by reducing the number of shares in circulation, which in turn raises the share price. Nvidia's $150bn pledge is the largest one-off increase to a share repurchase programme in history, eclipsing the $110bn authorised by Apple in 2024. The sum is bigger than the market value of all but four companies in the FTSE 100 and brings the company's total fund for share repurchases, which it draws on over time, to $235bn. California-based Nvidia makes the chips and networking equipment that underpin most of the world's leading AI systems. It has profited enormously from the AI boom, with much of the hundreds of billions being spent on data centres paying for Nvidia equipment. Profits more than doubled in Nvidia's last quarter to $60bn, while the company is expected to surpass Microsoft as the world's most profitable company next year with a forecast annual profit of $243bn. However, Nvidia has been accused of propping up an AI bubble with a series of "circular" deals designed to finance customers such as OpenAI and Anthropic, as well as a string of more direct customers such as infrastructure companies Coreweave and Nscale. Nvidia has rejected claims of circular financing and the buyback will be seen as a demonstration that the poster child of the AI boom is immensely profitable, despite bubble fears. Mr Huang said: "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 authorisation reflects our confidence in the long-term opportunity ahead." The world's biggest AI infrastructure companies – Meta, Amazon, Google and Microsoft – plan to spend $745bn this year on data centres and chips. This number is expected to rise again next year amid insatiable demand for the new technology. Nvidia shares have risen more than 1,200pc since the launch of ChatGPT in 2022 and last year it became the world's first $5tn company. However, concerns have been raised about planned investments because of the lack of electrical connections needed to run data centres. Data centre company Oracle last week issued a "force majeure" notice related to a data centre project in New Mexico after it emerged the site may not have an electrical connection in time for a planned opening in 2028. The notice could relieve Oracle from some rent payments, though the company has said the project is on track.
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