Nvidia Corp. has announced plans to increase its share buyback program by $150 billion, extending the initiative through January 2028. This expansion marks the largest stock repurchase program in the company's history. Additionally, the chipmaker intends to raise its current dividend of $0.25 per share, though specific details regarding the timing and scale of this increase remain undisclosed.
The company attributes these financial decisions to rapid revenue growth and the strong performance of its investment portfolio. Nvidia reported $22.44 billion in cash and cash equivalents at the end of its fiscal second quarter. Management projects a 70% sales increase for fiscal 2028, exceeding Wall Street expectations of 40%. The company currently generates $40 billion in revenue per gigawatt of customer data center capacity.
Nvidia's investment portfolio includes stakes in 13 public companies and 229 private startups, yielding a return on investment of more than three times. The company expects further gains from the upcoming IPOs of Anthropic and OpenAI. Nvidia previously invested $10 billion in Anthropic and $30 billion in OpenAI, with the latter deal valuing the developer at $730 billion.
Looking ahead, Nvidia plans to launch its next-generation Feynman GPU series in 2028. The company anticipates that its revenue per gigawatt of data center capacity will exceed $60 billion following this release. This product launch is part of a broader strategy to diversify its offerings beyond traditional graphics processing units into central processing units and networking equipment.
