“When $150 Billion Looks Small”
NVDA's $150B buyback is insufficient relative to its valuation and FCF, indicating a lack of new catalysts to impress investors.
They issued two statements today, one about the safety of artificial intelligence, and for investors, perhaps the most important was the board's announcement of a $150 billion share buyback agreement.
As the press release states, it is the largest in history, giving the board approximately $250 billion to repurchase shares currently. I think it's too small. I mean , look. They finally got rid of the one-cent-per-share dividend , which I also didn't understand.
But yes, the law of big numbers here seems out of context, and nothing seems big enough. Yes, 150 billion, boring.