Nvidia will direct an additional $150 billion to share repurchases through January 2028, the largest expansion of a buyback program on record. The chipmaker also plans to raise its quarterly dividend from $0.25 per share, without disclosing the size or timing of the increase. The company ties both moves to rapid revenue growth and strong returns from its startup investment portfolio. For enterprise technology buyers, the scale of the payout matters as a statement about cash generation from AI infrastructure.
Buyback terms and growth drivers
The authorization covers repurchases through January 2028 and was announced alongside $22.44 billion in cash and cash equivalents at fiscal second-quarter end. Adjusted profit and revenue more than doubled on demand for graphics cards. Chief Executive Officer Jensen Huang said cash generation funds technology investment and shareholder returns, reflecting confidence in long-term opportunity. Chief Financial Officer Colette Kress told analysts that sales should increase by another 70% in fiscal 2028, compared with a Wall Street expectation of 40%.
Nvidia says it now generates $40 billion in revenue for every gigawatt of data center capacity built by customers, four times the level recorded in 2022. The company expects that figure to top $60 billion after the launch of its next-generation Feynman series of GPUs, scheduled for 2028. The increase reflects a lineup that five years ago consisted almost solely of graphics processing units and now includes central processing units, networking gear and other data center products. In this structure, each new silicon generation raises the revenue attached to the same unit of customer power capacity.
The second pillar is a portfolio of stakes in 13 public companies and 229 private startups, where exits have delivered a more than threefold return on investment. Last November Nvidia committed $10 billion to Anthropic PBC, valued at $183 billion two months earlier and now reportedly preparing to list at a $2 trillion valuation. OpenAI Group PBC raised $30 billion from Nvidia in a February deal that valued it at $730 billion. Nvidia points to the upcoming public offerings of Anthropic and OpenAI as an additional windfall supporting shareholder returns.
What this means for AI buyers and vendors
For companies building on AI, the message concerns supplier capacity rather than share price. A vendor earning $40 billion per gigawatt and planning for more than $60 billion has a strong incentive to expand silicon, processors and networking as a single stack. Large buyers can expect tighter integration and faster iteration of data center building blocks, while smaller firms will feel the effect through cloud providers and integrators that standardize on Nvidia components. The 70% sales outlook for fiscal 2028 also suggests supply will stay oriented toward large-scale AI deployments.
The announcement leaves several points for diligence. The dividend change has no amount or date, and the $150 billion authorization runs to January 2028 without a disclosed purchase schedule. Forecasts for 70% growth and higher revenue per gigawatt depend on continued data center construction and on Feynman arriving in 2028. Investment gains depend in part on future listings of Anthropic and OpenAI, whose higher valuations remain reported expectations. Buyers should not read the buyback as a price commitment and should clarify how costs and lead times are fixed in contracts.
The trend will be tested by three markers: actual repurchases through January 2028, delivery of Feynman GPUs in 2028 with revenue per gigawatt above $60 billion, and the listings of Anthropic and OpenAI. If sales growth approaches 70% in fiscal 2028, Nvidia will have confirmed that full-stack expansion and investment income can fund both development and capital returns.
