On the evening of September 28th, Beijing time, NVIDIA ( NVDA.O ) announced that its board of directors has approved an increase of $150 billion to the stock repurchase plan, raising the total authorized repurchase amount to $235 billion. This is the largest additional stock repurchase authorization in NVIDIA's history. NVIDIA expects to complete the remaining stock repurchase plan before the end of the fiscal year 2028.
"NVIDIA's growth is attributed to the trend of computing platforms transitioning towards artificial intelligence and accelerated computing platforms," NVIDIA CEO Jensen Huang stated. NVIDIA's cash flow enables the company to invest in driving this technological shift and return capital to shareholders. This authorization reflects NVIDIA's confidence in future long-term opportunities."
In March of this year, Jensen Huang mentioned in an interview that NVIDIA needs cash to support suppliers and partners as well as to invest in its ecosystem, yet it still maintains a substantial amount of free cash flow. He stated that NVIDIA will undertake share repurchases, using 50% of its free cash flow to reward investors, a proportion that is higher than last year.
In May of this year, NVIDIA's market value reached $5.67 trillion. Recently, many professionals in the AI field have publicly discussed the AI security issues and potential hazards. Influenced by market sentiment and other factors, on September 14th, the stock prices of several semiconductor companies in the U.S. market declined, causing NVIDIA's market value to evaporate by $176.6 billion that day. However, NVIDIA's stock price subsequently rebounded. As of the close on September 25th, NVIDIA's market value was $5.42 trillion, making it the only U.S. stock with a market value exceeding $5 trillion.
Jensen Huang recently made statements regarding the security issues of AI. At an event earlier this month, in response to the opinion that “AI should slow down its development,” Jensen Huang stated that such panic creates a false dilemma between rapid innovation and the security of AI. Subsequently, at an artificial intelligence event in the UK, Jensen Huang emphasized that artificial intelligence security is of paramount importance, and companies should continue to move forward quickly. If they believe that certain products pose security risks, they should postpone their release.
On September 28th, Beijing time, NVIDIA also launched an open agent security platform. Throughout all stages from agent testing to deployment, this platform can be used to enhance AI security. Specifically, this platform can be utilized for the full-stack governance and management of software that runs agents, the hardware and computing layers that support agent operation, as well as robot systems that perform tasks in the physical world.
NVIDIA stated that recent security incidents have highlighted the necessity for organizations to equip themselves with open and customizable tools to enhance control over long-running intelligent agents. More than 100 organizations, including Accenture, Cadence, Cisco, Dassault Systèmes, Deloitte, Perplexity, Microsoft, and others, are already adopting NVIDIA's open intelligent agent security platform technology. Jensen Huang believes that only by addressing the AI security issues can the extraordinary potential that AI brings to society be fully realized.
Before the market opened on September 28th in the US stock market, NVIDIA's shares rose by more than 2%.
