Nvidia announces jaw-dropping $150 billion stock buyback, largest single authorization in history

The valuation on Nvidia ( NVDA ) is too appetizing for CEO Jensen Huang to ignore any longer.

The king of AI chips revealed a stunning new $150 billion stock buyback plan on Monday — the largest share repurchase authorization increase in history. It brings the company's total buyback authorization to $235 billion.

"NVIDIA's growth is being driven by a once-in-a-generation platform shift to AI and accelerated computing," Huang said in a statement. "Our cash generation gives us the capacity to invest in the technologies that advance this transformation and return capital to shareholders. This authorization reflects our confidence in the long-term opportunity ahead."

Huang likely sees a great moment to buy back Nvidia shares on the cheap, ahead of further acceleration in AI development.

Nvidia's forward price-to-earnings (P/E) multiple has declined steadily since August 2024, when artificial intelligence began to take hold, unleashing a boom in the company's stock price and earnings growth.

The decline has only accelerated this year despite a series of strong quarters.

The forward P/E ratio for Nvidia currently stands at 24 times, not too far removed from the S&P 500's ( ^GSPC ) 20-times multiple, despite the company being one of the fastest-growing companies in corporate America.

Brian Sozzi is Yahoo Finance's Executive Editor, host of the Sozzi Unleashed morning show, the ' Power Players With Brian Sozzi' podcast and a member of Yahoo Finance's editorial leadership team. Follow Sozzi on X @BrianSozzi , Instagram , and LinkedIn . Tips on stories? Email brian.sozzi@yahoofinance.com.