Nvidia's record buyback shows chipmaker's stock is too cheap for CEO Huang to resist
- ID
- 29749
- Status
- summarized
- Published
- 29 Sep 2026, 9:09 PM
- Fetched
- 29 Sep 2026, 9:49 PM
- Provider
- CNBC Technology
- Category
- technology
- Original URL
- https://www.cnbc.com/2026/09/29/nvidia-buyback-shows-chipmaker-stock-is-too-cheap-for-huang-to-resist.html
- Source URL
- https://www.cnbc.com/id/19854910/device/rss/rss.html
Summary
- Score
- 2.5
- Created
- 29 Sep 2026, 9:50 PM
- Tags
- Audience
- saas_startup_founders
What happened
Nvidia announced a record stock buyback on Monday, at a point when its forward price-to-earnings ratio for fiscal 2028 sat at 14.5 — below every megacap peer except Micron and well under its five-year average P/E of 62.9. The chipmaker is now valued above $5.5 trillion, its stock is up 23% this year, and analysts on average expect net income near $385 billion; CEO Jensen Huang has been signalling he intends to buy shares himself. Karan Ramchandani of Post Oak Group called the buyback 'a very healthy mark of a company looking at their own stock buybacks as the best investment they could do in the coming year.'
Why it matters
There is no product, price, API, or roadmap change here — nothing a developer, agent builder, or SaaS founder has to act on this week. The only concrete decision it informs is a portfolio one: Nvidia's own board is buying at a 14.5 forward multiple versus a 62.9 five-year average, which is a bet that the earnings growth analysts expect (about $385 billion) actually lands. If you are budgeting GPU or inference spend for next year, treat this as a sentiment signal only, not a capacity or pricing signal.
Discussion angle
Worth a two-minute aside at most: the gap between Nvidia's 14.5 forward P/E and its 62.9 five-year average implies the market is pricing in a slowdown in AI infrastructure spend. Ask the room whether their own 2027 compute budgets assume GPU prices and availability keep improving — and whether anyone has actually modelled the opposite case.