SANTA CLARA, California: Nvidia has added a record US$150 billion to its share buyback authorization, bringing its remaining capacity to $235 billion as demand for artificial intelligence chips continues to drive cash generation.

The increase surpasses Apple's $110 billion buyback approval in 2024. Nvidia expects to use its remaining authorization through fiscal 2028.

Shares of the chipmaker rose nearly two percent. The stock had gained more than 20 percent this year through Friday's close, but was trading at about 16.5 times its expected earnings over the next 12 months, its lowest multiple since January 2015, according to LSEG data. That compares with a 15-year average of 30.

Some analysts view the lower valuation as a sign of slowing expectations for profit growth.

"Our cash generation gives us the capacity to invest in the technologies that advance this transformation and return capital to shareholders," CEO Jensen Huang said in a statement.

Nvidia's $150 billion increase exceeds the market capitalization of about 84 percent of companies in the S&P 500, according to LSEG data. The announcement also comes as stock buybacks have slowed, falling about 50 percent from July through September 23.

"The AI buildout won't continue at its current pace forever, but Nvidia is signaling confidence that demand for its hardware and services has staying power," said Jacob Bourne, an analyst at Emarketer.

"Its cash generation is currently strong enough that it believes it can continue investing heavily in the business while also returning capital to shareholders," he added.

Nvidia ended the July quarter with $22.44 billion in cash and cash equivalents. It previously announced an $80 billion share buyback in May.

Last month, the company forecast about 70 percent revenue growth for fiscal 2028, reassuring investors who had questioned how long the surge in AI spending could continue after years of rapid growth.