Nvidia announced another stock buyback on Monday, increasing the repurchase of common stock by a record $150 billion and bringing the total repurchase authorization to $235 billion through 2028.

The company has aggressively deployed cash to buy back its shares since 2025, far eclipsing similar efforts of other tech giants, including Apple (AAPL), Alphabet (GOOGL) (GOOG), and Meta (META).

In fiscal year 2025, Nvidia repurchased approximately $34 billion in shares. In fiscal year 2026, buybacks climbed to over $40.4 billion. Then, in the first half of fiscal year 2027, which ran through July 2026, the company bought back $39 billion in stock.

Nvidia stock ( NVDA ) rose Monday on the buyback news, along with the announcement of its Open Agent Safety Platform, an open software platform aimed at enhancing the security of third-party systems deploying AI agents.

Here's what the buyback news means for shareholders and potential investors.

Read more: Nvidia announces $150 billion stock buyback, largest single authorization in history

What the Nvidia buyback means for shareholders

For existing Nvidia shareholders, the massive, ongoing buyback will boost earnings per share by reducing the number of shares outstanding.

Former Wall Street analyst David Bennett wrote on X.com that "when the market started asking 'how long can the AI boom last?' Nvidia didn't talk. It wrote a check."

He noted that Nvidia already trades near 18.7 times forward earnings.

"Management is buying back its own stock at a multiple cheaper than most S&P 500 companies," Bennett added. And he says the company doesn't have to choose between growth and returns.

"Nvidia generated $74.4 billion in operating cash flow in the first half of fiscal year 2027 alone, and still returned $46.1 billion to shareholders. It can fund AI expansion and buy back stock. That's a luxury most companies don't have," Bennett said.

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What the Nvidia buyback means for potential investors

Investors considering buying Nvidia stock may be drawn to the free cash flow the company has generated despite enormous investments in AI.

On "Sozzi Unleashed," Brian Sozzi, Executive Editor at Yahoo Finance, said Nvidia CEO Jensen Huang has issued a "mind-blowing" statement of confidence to the market and investors.

"I think this is Jensen saying, 'I'm tired of my stock trading at [such low] valuation levels.' Nvidia's PE ratio has gone down as the company has crushed it. He knows he's the leader in AI chips. And now he's putting $150 billion to work and sending a signal of confidence to investors," Sozzi said.

"I'm not surprised to see Jensen do it. I think he's frustrated with the valuation of his company, as he should be, because it doesn't make a lot of sense to me," he added.

A 'one-in-a-generation shift to AI'

Nvidia has a market cap exceeding $5.4 trillion, the largest in the world.

"Nvidia's growth is being driven by a once-in-a-generation platform shift to AI and accelerated computing," Nvidia CEO Huang said in a statement announcing the $150 billion share buyback. "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."