Business

8 months ago

Nvidia's $25 Billion Buyback a Head-Scratcher for Some Shareholders

Nvidia (symbolic picture)
Nvidia (symbolic picture)

 

IIE Digital Desk : Nvidia's decision to repurchase $25 billion of its own shares has puzzled some shareholders, who are wondering why the chipmaker is not investing the money in research and development or other growth initiatives. The buyback, which was announced on Thursday, is the largest in Nvidia's history. The company said that it would use the proceeds to return capital to shareholders and to "create additional flexibility for future strategic opportunities."

However, some shareholders are not convinced that the buyback is the best use of Nvidia's money. They argue that the company should be investing in research and development to stay ahead of the competition. They also point out that Nvidia has a history of making acquisitions, and they believe that the company could use the buyback money to make a strategic acquisition. Nvidia CEO Jensen Huang has defended the buyback, saying that it is a way to "reward our shareholders for their continued support." He also said that the company is still investing heavily in research and development.

The buyback is expected to be completed in the next two years. It is unclear how the buyback will affect Nvidia's stock price. Some analysts believe that the buyback will be positive for the stock, while others believe that it will have a neutral or even negative impact. Only time will tell whether Nvidia's decision to repurchase $25 billion of its own shares was the right one. However, it is clear that the move has generated some debate among shareholders.


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