Nvidia's $25B Buyback Stuns Investors

Nvidia announced a $25 billion stock buyback program, despite its stock price more than tripling in 2023, in a move that surprised some investors. Nvidia's high stock price and strong growth made the large repurchase size questionable to some. Some investors welcomed the confidence shown and the return of capital to owners. Others would have preferred the cash be reinvested in the fast-growing company. At over $200 billion, Nvidia has ample resources for both aggressive buybacks and investments in its growth. The program aims to return cash without limiting flexibility.