Nvidia Buyback Freeze Follows Perfectly Timed Binge
- Nvidia repurchased $10 billion in stock ahead of record surge
- Recent halt in spending spree viewed by some as a warning sign
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Nvidia Corp. made some astute stock buybacks last year ahead of a monster rally fueled by the artificial intelligence frenzy. Now the chipmaker is drawing attention because it stopped buying.
After a three-year hiatus, Nvidia spent more than $10 billion repurchasing shares in the fiscal year that ended Jan. 29, a period that coincided with a precipitous drop in the price of the stock. That buying proved prescient, as Nvidia reached a $1 trillion market cap when shares surged to $410 at Tuesday’s close, more than double the average stock price during fiscal 2023.