Nvidia’s Aggressive Buyback Expansion is a Flashing Green Light Alex Sirois Wed, October 14, 2026 at 8:45 AM EDT 5 min read NVDA +0.97% AMD +1.90% INTC +1.44% Explore stocks on Coinbase Trading disclosure Trading disclosure The above button links to Coinbase. Yahoo Finance is not a broker-dealer or investment adviser and does not offer securities or cryptocurrencies for sale or facilitate trading. Coinbase pays us for certain activity generated through this link. Prices displayed are informational.
NVIDIA returned a record $26 billion to shareholders in Q2 FY27, with $99 billion in remaining buyback authorization and revenue surging 106% year over year.
AMD trades at 228x earnings with no dividends or buybacks, while Intel posted an $11 billion net loss and guides to just 42% gross margins.
Jensen Huang expects roughly 70% revenue growth in fiscal 2028, and Vera Rubin lifts NVIDIA's revenue opportunity to $40 billion per gigawatt from $25 billion.
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My NVIDIA (NASDAQ:NVDA) position keeps growing, and the latest buyback expansion gave me one more reason to click buy again. When a company producing this much cash commits that much of it to reducing my share count, I want to own more of it.
NVIDIA offers the full AI stack: compute, networking, and the CUDA software that ties them together. The company turns that platform into cash and sends a growing share of it back to owners like me. The CEO, Jensen Huang, summed up the demand side: "AI has reached its inflection point. It's doing useful work. Its tokens are productive and profitable. Now, compute is revenue."
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In May 2026, the board approved an additional $80.0 billion repurchase authorization with no expiration, on top of $38.5 billion left under the prior one. By the end of Q2 FY27, roughly $99.0 billion remained. In that quarter alone, NVIDIA returned a record $26 billion: $20 billion in buybacks and $6 billion in dividends after raising the quarterly payout from $0.01 to $0.25 per share. Management said, "Relative to our plan to return 50% or more of free cash flow, we have returned 60% on a year-to-date basis," and added that it intends to "increase and return excess free cash flow net of strategic uses."
Q2 FY27 revenue reached $96.22 billion, up 105.8% year over year. Non-GAAP EPS of $2.22 topped the $2.09 consensus, the fifth consecutive beat. Data Center revenue rose 117% to $89.02 billion. Guidance calls for $108.0 billion, plus or minus 2%, in Q3, and management expects roughly 70% revenue growth in fiscal 2028 while supply-constrained.
I pay about 46 times earnings for a business with a 101.49% ROE, 92.21% ROIC, debt-to-equity of 0.0726, and interest coverage of 503.42x. That balance sheet lets buybacks continue through any soft patch.
Advanced Micro Devices (NASDAQ:AMD) trades near 228 times earnings, posted a 56% non-GAAP gross margin against NVIDIA's 75.0%, pays no dividend, and reported no repurchases in its first two quarters of fiscal 2026. Intel (NASDAQ:INTC) booked a $11.0 billion GAAP net loss in Q2, pays no dividend, and guided to roughly 42.0% non-GAAP gross margin. Intel now partners with NVIDIA on custom NVLink products, so I get that upside through my NVIDIA shares.
Export restrictions keep China Data Center compute out of guidance, and NVIDIA carries $279 billion in supply commitments plus guarantees limited at $108.5 billion. Days sales outstanding rose to 60 days from 45 days, and gross margin should bottom at 71% to 72% in Q4 on memory costs. Those commitments could hurt should AI spending stall. The guidance already assumes zero China revenue and demand exceeds supply, which supports my thesis. Huang said, "Our demand is much higher than that."
Vera Rubin lifts NVIDIA's opportunity to $40 billion per gigawatt from $25 billion with Blackwell. All of that compute still has to be powered, cooled, and networked by somebody, which is why we rounded up seven suppliers behind the AI expansion in a free report. Shares slipped 4.48% over the past week as new AI announcements failed to re-energize investors. I welcome that. Every decline lets my dollars and NVIDIA's $99.0 billion authorization buy more of the same business, and I plan to keep buying alongside the company.
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