Nvidia closed at $228.38 on Sept. 30, up 0.52%, as investors weighed last week's $150 billion buyback authorization and a same-day update on its AI safety accord. The move lifts Nvidia's total repurchase capacity to $235 billion through 2028, as the company likely can afford it given revenue that grew 106% year over year in its most recent quarter.
Nvidia closed at $228.38, up 0.52%, adding $1.17 a share. Premarket buyback headlines and a session update on its AI safety accord kept investors focused on the chipmaker's capital returns and AI demand.
Trading volume reached 117.7 million shares, nearly 5.2% below its three-month average of 124.1 million shares.
Buyback authorization lifts total to $235 billion
Last week, Nvidia authorized an additional $150 billion in share repurchases, taking its total buyback capacity to $235 billion through 2028. Just over 60 companies trading on U.S. markets have a market cap above $235 billion today.
The company likely can afford the buybacks because revenue for fiscal Q2, which ended July 26, increased 106% year over year. Despite that growth, its forward P/E ratio stands at just 25.
Broader market and peers moved in mixed directions
The S&P 500 closed at 7,654, down 0.23%, while the Nasdaq Composite finished at 26,861, up 0.24%. Among semiconductor peers, Advanced Micro Devices closed at $611.76, up 0.69%, and Broadcom closed at $351.19, down 1.10%, as investors tracked accelerated computing, GPU, AI, and data-center networking demand.
AI safety accord and quantum push add to the picture
Nvidia's AI safety accord likely brings comfort to those concerned about out-of-control AI. That update follows the company's move last month to expand Open-Source CUDA-Q to offer fault-tolerant quantum computing, extending its software platform beyond core GPUs.
The chipmaker went public in 1999 and has grown 556,695% since its IPO.
Source: The Motley Fool
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