NVIDIA Boosts Buyback to Historic Levels as Stock Trades at 10-Year Low P/E Ratio
· Business · CNBC
NVIDIA has authorized an additional $150 billion for its share buyback program following an $80 billion repurchase plan announced in May. The chipmaker's price-to-earnings ratio for fiscal 2028 sits at 14.5, which is below all megacap peers except Micron and marks its cheapest level in a decade. CEO Jensen Huang recently told CNBC that purchasing NVIDIA shares is a tremendous opportunity as revenue and cash flow surge from artificial intelligence demand. Analysts project NVIDIA to reach net income of close to $385 billion in fiscal 2028, representing a 60% increase from the prior year. The company also announced new software and hardware solutions to control AI agents alongside the expanded capital return plan.
Why it matters
The record buyback underscores management's confidence in NVIDIA's valuation as the chipmaker powers the global artificial intelligence boom. Investors and market participants gain insight into how the world's most valuable company deploys its surging cash flow amid constricted earnings multiples.
Read the original report — CNBC
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