NVIDIA (NASDAQ:NVDA) Announces Stock Repurchase Program

Key Points

• NVIDIA authorized a $150 billion share repurchase program, allowing it to buy back up to 2.8% of outstanding shares through open-market purchases. The move may signal management believes the stock is undervalued and could support future earnings per share.
• Wall Street remains broadly positive, with the stock carrying a consensus “Buy” rating and an average price target of $324.14. NVIDIA also exceeded quarterly expectations, reporting $2.22 in EPS and $96.22 billion in revenue, up 105.9% year over year.
• NVIDIA declared a quarterly dividend of $0.25 per share, equivalent to a 0.4% annualized yield, while insiders have sold substantial amounts of stock in recent months.

NVIDIA (NASDAQ:NVDA - Get Free Report) declared that its Board of Directors has authorized a share buyback plan on Monday, September 28th, RTT News reports. The company plans to buyback $150.00 billion in outstanding shares. This buyback authorization permits the computer hardware maker to repurchase up to 2.8% of its shares through open market purchases. Shares buyback plans are often an indication that the company's management believes its stock is undervalued.

Wall Street Analyst Weigh In

Several analysts have issued reports on NVDA shares. Benchmark reaffirmed a "buy" rating and issued a $335.00 target price on shares of NVIDIA in a research note on Thursday, August 27th. Citigroup restated a "buy" rating and issued a $315.00 price objective (up from $300.00) on shares of NVIDIA in a report on Thursday, August 27th. Royal Bank Of Canada lifted their target price on shares of NVIDIA from $300.00 to $330.00 and gave the stock an "outperform" rating in a research report on Thursday, August 27th. William Blair reissued an "outperform" rating on shares of NVIDIA in a research note on Tuesday, June 2nd. Finally, Wells Fargo & Company restated an "overweight" rating and issued a $315.00 target price on shares of NVIDIA in a report on Tuesday, August 11th. Four investment analysts have rated the stock with a Strong Buy rating, fifty have given a Buy rating and one has given a Hold rating to the company's stock. Based on data from MarketBeat, the company presently has an average rating of "Buy" and a consensus price target of $324.14.

NVIDIA Trading Up 1.7%

NVDA stock traded up $3.79 on Monday, reaching $228.86. The company's stock had a trading volume of 141,428,093 shares, compared to its average volume of 106,311,688. The business has a fifty day simple moving average of $217.03 and a two-hundred day simple moving average of $206.33. NVIDIA has a 12-month low of $164.27 and a 12-month high of $236.54. The firm has a market cap of $5.52 trillion, a PE ratio of 28.93, a PEG ratio of 1.74 and a beta of 2.22. The company has a debt-to-equity ratio of 0.14, a quick ratio of 3.85 and a current ratio of 4.59.

NVIDIA (NASDAQ:NVDA - Get Free Report) last issued its quarterly earnings data on Wednesday, August 26th. The computer hardware maker reported $2.22 EPS for the quarter, topping the consensus estimate of $2.09 by $0.13. The business had revenue of $96.22 billion during the quarter, compared to analyst estimates of $92.27 billion. NVIDIA had a net margin of 63.66% and a return on equity of 96.04%. The company's revenue for the quarter was up 105.9% on a year-over-year basis. During the same period in the prior year, the business earned $1.05 EPS. As a group, research analysts forecast that NVIDIA will post 9.25 EPS for the current year.

NVIDIA Announces Dividend

The company also recently declared a quarterly dividend, which will be paid on Thursday, October 1st. Investors of record on Thursday, September 10th will be given a dividend of $0.25 per share. The ex-dividend date is Thursday, September 10th. This represents a $1.00 annualized dividend and a dividend yield of 0.4%. NVIDIA's payout ratio is currently 12.64%.

Insider Buying and Selling

In other NVIDIA news, Director Mark Stevens sold 622,239 shares of the stock in a transaction on Friday, September 4th. The stock was sold at an average price of $231.62, for a total value of $144,122,997.18. Following the completion of the transaction, the director owned 2,336,531 shares in the company, valued at approximately $541,187,310.22. This represents a 21.03% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through this link. Also, EVP Timothy Teter sold 30,460 shares of the firm's stock in a transaction on Monday, September 21st. The shares were sold at an average price of $222.80, for a total value of $6,786,488.00. Following the transaction, the executive vice president directly owned 2,687,660 shares of the company's stock, valued at $598,810,648. This represents a 1.12% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders have sold a total of 1,766,118 shares of company stock valued at $399,450,353 over the last ninety days. Company insiders own 3.94% of the company's stock.

Key NVIDIA News

Here are the key news stories impacting NVIDIA this week:

• Positive Sentiment: Record buyback signals confidence and may support earnings per share. NVIDIA authorized an additional $150 billion in share repurchases, bringing the remaining program to $235 billion through fiscal 2028—the largest increase in its history. The move highlights the company’s substantial cash generation and could reduce the share count over time. Nvidia adds $150 billion to existing share repurchase plan
• Positive Sentiment: Possible reopening of China demand provides an additional sales catalyst. Chinese officials reportedly asked ByteDance and Alibaba to outline potential purchases of NVIDIA’s RTX PRO 5500 processors, suggesting Beijing may permit selected companies to buy some NVIDIA chips despite U.S. export restrictions. Any approval would expand NVIDIA’s addressable market, although the policy remains unconfirmed. China weighs letting ByteDance and Alibaba buy new Nvidia chips
• Positive Sentiment: AI safety platform broadens NVIDIA’s software opportunity. The company launched its Open Agent Safety Platform, including tools that isolate AI agents, enforce access policies, monitor behavior, and shut down violations. The initiative addresses high-profile AI security incidents and could strengthen NVIDIA’s software ecosystem while encouraging safer enterprise adoption. Nvidia releases software platform to stop AI agents from misbehaving
• Positive Sentiment: Advanced packaging could increase future chip capacity. NVIDIA is reportedly exploring glass substrates to build larger packages with denser connections and more high-bandwidth memory. The technology could help address scaling constraints, though rising HBM prices make packaging economics increasingly important. Nvidia's Glass Packaging Push Could Reshape AI Chips
• Neutral Sentiment: Technical analysts see further upside but require a breakout. One forecast identifies $261.84–$265.30 as a potential target if NVDA clears approximately $234.76. This is market sentiment rather than a fundamental change and depends on continued momentum. NVIDIA Stock Forecast: Breakout Could Unlock $265 Target
• Negative Sentiment: Macro and valuation risks remain. Oil above $106 and Treasury yields above 5.20% pressured technology stocks, while NVIDIA’s multitrillion-dollar valuation leaves little room for execution or demand disappointments.
• Negative Sentiment: Competition and concentration could limit long-term returns. Hyperscalers and AI laboratories are developing proprietary chips, while most of NVIDIA’s revenue remains tied to data-center demand. Investors must also monitor energy costs, HBM prices, export controls, and whether AI spending ultimately produces sufficient returns.

About NVIDIA

NVIDIA Corporation is a technology company that designs accelerated computing platforms, graphics processing units (GPUs), central processing units (CPUs), networking products and related software. Its technologies are used in artificial intelligence, data centers, scientific and technical computing, gaming, professional visualization, automotive systems and robotics.

The company's products include GeForce GPUs and gaming software, data center computing platforms, networking solutions, and enterprise software for AI development and deployment.

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