$NVIDIA(NVDA.US)

Trade: Nvidia's board of directors announced an additional $150 billion share buyback authorization, boosting the remaining capacity under its existing program to $235 billion, setting a record for the largest single buyback authorization increase by a U.S. company. The company expects to execute the remaining program through fiscal year 2028, with the actual size and timing yet to be determined. Based on Nvidia's market capitalization of approximately $5.56 trillion as of September 28, its remaining share repurchase authorization of $235 billion accounts for about 4.2% of its market value. If repurchased shares exceed new shares issued due to equity incentives and other factors, the number of outstanding shares will decrease, boosting earnings per share assuming net income remains unchanged.

My Trade: Not actively trading too much for Nvidia - I see this as a long term holding in my portfolio as one of the more stable mid to mature growth company. Though if shares drop to $200 and below, it could start to be even more enticing.

Takeaway: Strong revenue and cash flow provide a financial foundation for share buybacks, but Nvidia still needs to continuously invest in chip R&D, supply chains, and strategic projects. Major risks include large customers cutting AI capital expenditure, restrictions on advanced chip exports, competition from custom AI chips, and customer concentration. If revenue growth or profit margins decline, the market may downgrade earnings expectations, and the support of buybacks for the stock price will also weaken. @Captain's Treasure