Nvidia defies Monday sell-off with $150 billion buyback

Nvidia (NVDA) shares are bucking Monday's downward trend among equities. The leading AI semiconductor company announced that the addition of another $150 billion in share buybacks has been approved by its board of directors.

Though Nvidia is a $5.4 trillion company, and thus the announcement means that it is buying back just 2.75% of shares at the current market capitalization, investors congratulated the announcement as a sign that management is focused on shareholder returns and not just endless circular financing of AI labs.

The NASDAQ Composite, S&P 500 and Dow Jones Industrial Average are all trading about 1% lower despite Nvidia's repurchase announcement due to rising US Treasury yields and higher Oil prices. The ever-significant 10-Year Treasury saw its yield rise more than 1.8% at last check to north of 5.25%.

Nvidia shows shareholders the money

The $150 billion in share buybacks comes in tandem with $85 billion left over from prior buyback authorizations. So shareholders can now expect Nvidia to repurchase $235 billion worth of shares between now and New Year's Eve of 2027.

The announcement comes less than six months after the company announced an $80 billion buyback in May. This $150 billion buyback announcement is the largest single authorization in US stock market history. It overtakes Apple's (AAPL) previous record for its $110 billion repurchase announcement in 2024.

“Nvidia’s growth is being driven by a once-in-a-generation platform shift to AI and accelerated computing,” said Jensen Huang, co-founder and CEO. “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.”

Nvidia projected 70% revenue growth in 2027 during its fiscal Q2 earnings call last month. That would mean revenue circa $456 billion this year growing to circa $700 billion in 2027 (fiscal 2028). The

The extreme growth rate of revenue at this juncture in the AI supercycle, coupled with this mega buyback announcement, should signal to investors that the locus of AI boom sees rally moving from strength to strength.

Nvidia nears previous all-time high levels

Nvidia sits less than 3% below its all-time high record from May 14 of this year at $236. With NVDA shares demonstrating higher lows since the range bottom in June and July, the odds for a retest are high.

October 2025 resistance between $208 and $2012 turned into support in August and September. This basing formation is necessary for bulls to make a run at the top trendline, which has demonstrated its significance for more than two years at this point with three previous range high tests.

We should expect a fourth test to push Nvidia shares up to $255. Although Micron earnings on Wednesday could push bulls in that direction, the clearest catalyst is Q3 earnings on November 25.