Nvidia $NVDA has just increased its share buybacks by $150 billion. It is the largest increase in history.

The company will buy back its own shares from the market. There will then be fewer shares and each remaining share will have a claim to a larger slice of profit. In total, Nvidia has $235 billion earmarked for buybacks and wants to spend it by the end of fiscal 2028. That works out to as much as $39 billion per quarter.

Why now? The stock is trading at roughly 16.5 times expected earnings, which is the cheapest since 2015. Jensen Huang is signaling to the market: we ourselves think we are cheap.

But note, in June Nvidia borrowed $25 billion in bonds for the first time in five years. I wrote that it is key to watch whether that money goes into capacity or into buybacks. This is at least a partial answer.

But note, authorization is not an obligation. The company can slow or stop buybacks at any time.