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'So much cash': Nvidia stock jumps after largest share buyback ever
Yahoo Finance • • general
Key Points:
- Nvidia announced a $150 billion share buyback plan, the largest in history, increasing its total buyback authorization to $235 billion, signaling confidence that its stock is undervalued.
- The company’s stock is trading at its lowest valuation in about four years, with a trailing price-to-earnings ratio around 30, despite analysts predicting nearly double earnings per share this fiscal year.
- Nvidia CEO Jensen Huang’s strong cash flow enables significant investments while maintaining ample cash reserves, reinforcing management’s belief in the stock’s value.
- Nvidia also introduced a new AI safety platform aimed at setting guardrails for the industry, reflecting Huang’s strategy to foster overall market growth benefiting Nvidia.
- The company’s market capitalization exceeds $5.5 trillion, making it $500 billion more valuable than Apple, with third quarter earnings expected on November 17.
