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Nvidia said Monday that it has authorized an additional $150 billion for its share buyback program, lifting the total to $235 billion. The expansion arrives amid record spending on artificial intelligence and gives the chip giant considerably more capacity to repurchase its shares.

The company called the authorization boost the largest share repurchase authorization increase in history. Nvidia expects to complete the total remaining buyback program through fiscal 2028.

The announcement adds a major capital return commitment to a period of powerful stock performance. Nvidia shares have climbed 24% over the past 12 months, pushing the company’s market capitalization to $5.42 trillion.

The stock gained another 2.8% on Monday. That advance accompanied the buyback announcement and Nvidia’s continuing focus on the massive infrastructure spending required to power artificial intelligence.

Nvidia produces the most advanced chips used for AI and has emerged as a major beneficiary of the spending boom surrounding the technology. Its products serve companies building the data centers and computing systems needed for AI.

CEO Jensen Huang placed the company’s growth within a broad technology transition. “NVIDIA’s growth is being driven by a once-in-a-generation platform shift to AI and accelerated computing,” CEO Jensen Huang said in a statement.

Huang also linked Nvidia’s cash production to both technology investment and shareholder returns. “Our cash generation gives us the capacity to invest in the technologies that advance this transformation and return capital to shareholders,” he added.

“This authorization reflects our confidence in the long-term opportunity ahead.” The statement presented the larger buyback as an expression of management’s outlook for Nvidia’s position in AI and accelerated computing.

Capital spending projections point to an enormous build out among the largest technology customers. S&P Global Ratings said in August that combined hyperscaler capital expenditure is projected to exceed $1.3 trillion by 2027.

Companies are racing to construct AI infrastructure, including data centers. Nvidia supplies chips that sit at the center of that spending push, while the company expects its sales volume to rise.

Earlier this month, Huang said Nvidia would double the number of chips it sells in 2027. The projection adds another measure of the scale Nvidia anticipates as companies expand their computing capacity.

The company’s leading AI products include graphics processing units and its Grace Blackwell and Vera Rubin systems. Nvidia also produces a broader collection of semiconductors serving computing, networking, robotics, vehicles, laptops and gaming.

Those products include central processors, commonly called CPUs, along with switch chips and chips for optical networking. Nvidia also makes Jetson chips for robots and cars, as well as the chip inside Nintendo’s Switch 2 gaming console.

Speaking to CNBC’s “Squawk Box” on Monday, Huang described the infrastructure expansion in sweeping terms. “I think we’re going through the largest infrastructure build-out in human history, and we have the benefit of being a very central part of that,” Huang said.

Huang said the company expects to generate substantial cash as the expansion continues. “We’re going to generate a lot of cash in the coming years, and every single year, as we generate more cash, we’d like to be able to return it back to shareholders,” he said.

The additional $150 billion authorization turns that stated intention into a much larger repurchase program. With $235 billion now authorized and completion expected through fiscal 2028, Nvidia has laid out both the scale and timetable for its remaining buybacks.

The plan combines continuing investment in technologies supporting AI with a direct return of capital to shareholders. Nvidia’s announcement, stock performance and chip sales expectations all come as projected hyperscaler spending moves toward $1.3 trillion by 2027.

DISCLAIMER: GoldInvestors.news is not a registered investment, legal or tax advisor or broker/dealer. All investment/financial opinions expressed by GoldInvestors.news are from the personal research and experience of the owner of the site and are intended as educational material. Although best efforts are made to ensure that all information is accurate and up to date, occasionally unintended errors and misprints may occur.