💻️ Nvidia’s Buyback Meets Cash Flow

The board raised Nvidia’s buyback authorization by $150 billion to $235 billion on 28 September, with use expected by January 2028. That implies about $15 billion a month, versus average free cash flow of $11.6 billion a month in the six months to July.

The authorization is permission, not spending, and can be suspended. Nvidia bought $19.7 billion of stock last quarter, or about $6.6 billion a month. Cash flow fell from $48.6 billion in the first quarter to $21.3 billion in the second.

The CFO said Nvidia plans to return 50% or more of free cash flow, versus 60% so far this year. In July, it held $56.6 billion in cash and debt securities, plus $42.8 billion in listed stock stakes, and sold $25 billion of bonds in June.

✔️ @venture