Nvidia stock popped in early trading after the AI hardware giant announced on Monday morning the largest share buyback in history and a new platform for AI safety guardrails.
The $150 billion stock buyback plan is the largest share repurchase authorization increase in history and brings the company’s total buyback authorization to $235 billion.
The move is a clear signal to the market that Nvidia management sees the stock as cheap. With a trailing price-to-earnings ratio of around 30, Nvidia is trading at its lowest valuation in about four years. That’s even as analysts predict earnings per share will almost double this fiscal year, according to estimates compiled by Bloomberg.
Jensen “has so much cash and so much cash flow that even after he makes after those investments, he still has a lot of cash left over,” Gil Luria, head of technology research at D.A. Davidson, told Yahoo Finance in a phone interview. “He knows his stock is cheap.”
Nvidia CEO Jensen Huang takes part in a press conference with Japanese multinational information and communications technology company Fujitsu in Tokyo on July 16, 2026. (Photo by Philip FONG / AFP via Getty Images) · PHILIP FONG via Getty Images
Asked about Nvidia’s new safety platform, Luria added: “Jensen is the great conductor, and when he sees a need, he fills it. He’s trying to get the whole market to grow, because he knows if the whole market grows, Nvidia is a winner.”
Nvidia’s total market cap sits at over $5.5 trillion, making it $500 billion more valuable than the next-largest company, Apple (AAPL).
Nvidia is expected to announce third quarter earnings results on Nov. 17.
Click here for the latest stock market news and in-depth analysis, including events that move stocks
Read the latest financial and business news from Yahoo Finance