History Says Nvidia's Record $150 Billion Buyback Is Good News for the Stock
2026-09-30 00:43
•Daniel Sparks •The Motley Fool
•••••••• •• Axe Cap view
Nvidia’s $150 Billion Buyback: What It Means for Investors
Nvidia’s massive share repurchase signals strong cash flow and could boost its stock, but South African investors should think carefully.
Nvidia just announced a record $150 billion buyback, more than doubling its previous plan. History tells us that such moves often come with strong cash generation and tend to precede solid stock gains. Comparing this to Apple, Nvidia’s is cheaper at 15 times expected earnings versus Apple's 36 times, making each rand spent on buybacks more impactful. For South African investors, Nvidia itself isn’t easily accessible, but the USD/ZAR is crucial here. A strong Nvidia could strengthen the dollar against the rand if tech sells off or rallies broadly, impacting local counters indirectly, especially those with global exposure like Naspers or Prosus. However, the risk is that if Nvidia’s cash flow falters or global tech sentiment sours, the buyback won’t help — meaning local tech shares and the rand could weaken. Watch USD/ZAR and Naspers for early signals. this is just our opinion and not financial advice
Watch Nvidia’s buyback progress but avoid jumping into local tech counters just yet. Keep an eye on USD/ZAR movements and selectively hold Naspers and Prosus with a cautious approach.
- NVDA
- USD/ZAR
- Naspers
- Prosus
- global tech sell-off hurting Nvidia and SA tech shares
- weaker cash flow undermines buyback benefits
6/10
Nvidia announced a record $150 billion addition to its share repurchase authorization, bringing the total to $235 billion. Historical data shows that large buyback announcements at both Apple and Nvidia have typically preceded 12-month periods of stock outperformance versus the S&P 500. However, the author argues that the underlying cash generation driving these buybacks, rather than the buybacks themselves, is the primary driver of stock gains. At current valuations, Nvidia trades at 15x expected fiscal 2028 earnings compared to Apple's 36x, making Nvidia's buyback more accretive per dollar spent.
Our take is based on reporting first published by The Motley Fool.