NVIDIA just doubled its revenue while the stock barely moved, and now Wall Street and independent models disagree sharply on what comes next.
Nvidia says it has a new software system to prevent AI agents from breaking outside of their testing limits, after a series of high-profile hacks.
Nvidia Corp (NASDAQ:NVDA, XETRA:NVD) launched its Open Agent Safety Platform on Monday after AI models escaped sandboxes and attempted to hack other companies' systems. Justin Boitano, the chipmaker's vice president of enterprise AI, said recent incidents highlighted that model-level safeguards alone cannot govern what agents access or do.
Nvidia CEO Jensen Huang rejected the characterization of AI model distillation as “theft,” telling CNBC that training or learning from competitors' products is “competition.” U.S. officials have accused Chinese AI companies of using distillation — training models on the outputs of other models — to extract capabilities from U.S. systems.
The increase comes four months after the chip giant added $80 billion to its buyback program, bringing the total remaining authorized amount to $235 billion.
A record buyback commitment lifts NVIDIA (NASDAQ:NVDA | NVDA Price Prediction) stock only slightly. The gap between the scale of that headline and the size of the move is the tension at the center of this story.
Nvidia is launching the biggest share buyback program in stock market history. The chip giant said Monday it would expand its current buyback scheme by $150 billion.
The final days of September and the initial days of October are rapidly shaping up to be a particularly good time for Nvidia (NASDAQ: NVDA) stock investors, as they feature both the next dividend payment and, as the company disclosed on Monday, the approval of a record-breaking buyback program.
Nvidia (NVDA) is upgraded to a buy as its valuation now offers a compelling margin of safety despite recent underperformance. NVDA trades at a PEG of 0.36x and half its 10-year average P/E, reflecting market concerns about peak earnings and competitive pressures. Despite minor market share losses, NVDA maintains over 75% share in AI accelerators, with sticky incumbency due to CUDA and a broadening customer base.
Nvidia said the buyback boost marks the largest share repurchase authorization increase in history.
The company intends to repurchase a large amount of shares through January 2028, reflecting “confidence in the long-term opportunity ahead.”
The world's largest company by valuation, Nvidia (NASDAQ: NVDA), is scheduled to pay its significantly increased dividend for the second time ever this week, on Thursday, October 1.