Nvidia's Buyback War Chest Hits $235 Billion as Lenders Question the Collateral
Published on 10/08/2026 at 06:50 | Editorial boerse-global.de
Nvidia's board has widened its share repurchase authorization by an additional $150 billion, lifting the total remaining envelope to $235 billion — a figure the chipmaker intends to deploy on buybacks through fiscal 2028. The approval came on September 28, and it lands alongside a quarterly dividend of $0.25 per share that was paid out to shareholders on October 1.
The capital-return push is the financial spine of a company that keeps finding new fronts to expand. On the product side, Nvidia and Microsoft took the stage in San Francisco to unveil Windows machines built around RTX-Spark technology, complete with features for AI agents. Pre-orders for the laptops opened Wednesday, with the devices set to reach shelves on October 16; compact desktop variants will trail in November. Microsoft used the occasion to show off its Nvidia-powered Surface Ultra notebook, priced from $2,599, with a broader slate of Windows hardware built on Nvidia silicon arriving from mid-month.
The strategic logic behind the collaboration is straightforward: run AI models and automated workflows on the device itself rather than routing every task through a data center. Local hardware promises faster execution of complex assistants and lower latency. For Nvidia, it marks a widening of the core business beyond the giant cloud customers, tightening its integration with the Windows ecosystem and courting developers and professional users who need serious computing power at their desks.
Wall Street Stays Bullish
Analysts have greeted the moves warmly. Daniel Ives of Yorkville Ives & Co initiated coverage today with a buy rating and a $300 price target. Joseph Moore of Morgan Stanley struck a similar note on Monday, reaffirming the stock as the leading name in semiconductors and setting the same $300 target. Morgan Stanley had already named Nvidia its top pick in the sector on October 2, keeping an "Overweight" rating. In the bank's view, Nvidia is comparatively well insulated from mounting strains on the US power grid. Delays in data-center construction could hit suppliers of memory chips or optical components, the analysts argue, but Nvidia's forecasts through 2027 are not at risk.
Should investors sell immediately? Or is it worth buying Nvidia?
The stock itself barely budged on the product news. Shares changed hands at EUR 211.75, down 0.4%, still within reach of a 52-week high of EUR 216.10. The prior session had closed at EUR 212.10, a dip of 0.2% that left the paper just 1.9% shy of its recent peak.
A New Financing Playbook — and Lender Jitters
How Nvidia's customers pay for all this hardware is turning into a story of its own. Amazon is reportedly weighing a plan to move roughly $8 billion worth of Nvidia processors into a special-purpose vehicle and lease them back — a step that has not been finalized. The maneuver illustrates the lengths buyers will go to in order to shoulder the enormous cost of modern data centers.
Capital markets, though, are not entirely comfortable with the trend. According to Reuters, lenders have raised concerns about the longevity of graphics processors when used as loan collateral in such financing arrangements, with some backers demanding stronger guarantees. Because hardware generations turn over so quickly, financiers see real risk in the residual value of the pledged chips. Even so, demand for the high-performance silicon remains robust as large technology firms press ahead with infrastructure buildouts. Should the leasing model catch on among major customers, it could become a template — and for Nvidia, it would mean steady offtake even as buyers work to keep their balance sheets lean.
What investors will ultimately watch is whether the company's customers can sustain their massive spending through these new funding channels.
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