Nvidia Stock Rises as Record $150 Billion Buyback Defies Chip Selloff

Key Takeaways

• Nvidia shares rose 1.68% to $228.86 on September 28, while major US indexes and many semiconductor stocks fell.
• The board added $150 billion to its repurchase authorization, bringing the remaining amount to $235 billion, which Nvidia expects to execute through fiscal 2028.
• Nvidia also introduced an AI agent safety platform, while a report raised the possibility that Chinese firms could buy its RTX PRO 5500 chips. Chinese approval has not been confirmed.

Nvidia Stock Gains as the Broader Market Falls

Nvidia shares bucked a weak US market on Monday, September 28, closing at $228.86, up $3.79, or 1.68%. The gain followed a record $150 billion increase to the chipmaker's share repurchase authorization and a separate announcement about its AI agent safety platform. Reports of a possible opening for sales of RTX PRO 5500 chips in China provided another potential positive, although that development remains unconfirmed.

Nvidia's advance stood out as the S&P 500 lost 0.8%, the Dow Jones Industrial Average fell 347 points, or 0.7%, and the Nasdaq Composite dropped 0.9%. The selloff came as the 10-year Treasury yield reached about 5.23% amid fresh volatility in oil and uncertainty over tanker traffic through the Strait of Hormuz. Rising yields can put pressure on richly valued growth shares by increasing the discount rate applied to future earnings.

Semiconductor shares were also broadly weaker. Intel, AMD and Micron declined, leaving Nvidia as an exception within a sector under pressure. Intraday reports placed the Philadelphia Semiconductor Index down more than 2%, although an intraday reading should not be treated as its final closing change.

What Nvidia's $150 Billion Buyback Means

Nvidia's board approved an additional $150 billion under its existing share repurchase program. That lifts the remaining authorization to $235 billion, which the company expects to execute through fiscal 2028. Nvidia described the increase as the largest in the history of share repurchase authorizations.

The distinction between an authorization and a completed buyback matters. The board has given the company the capacity to repurchase shares, but the full $235 billion has not already been spent. Actual purchases will unfold over time and depend on execution, cash generation and other corporate priorities. The announcement therefore sets out management's intentions rather than guaranteeing a fixed pace of buying or a particular share price.

Repurchases can reduce the number of outstanding shares and, all else equal, lift earnings per share. Their value to shareholders also depends on the price Nvidia pays and the returns it could earn from investing that cash elsewhere. In this case, the scale of the authorization gave investors a fresh measure of management's confidence in the cash that its AI business can produce.

CEO Jensen Huang linked the decision to Nvidia's opportunity in AI and accelerated computing, saying its cash generation gives it room to invest in technology while returning capital to shareholders. That message was particularly relevant on a day when higher bond yields and falling chip stocks tested appetite for AI-linked equities.

OpenShell and Sentry Expand Nvidia's AI Software Push

Alongside the buyback news, Nvidia launched its Open Agent Safety Platform, designed to help organizations control AI agents from testing through deployment. The platform combines OpenShell, open-source software that sets and enforces boundaries around an agent's actions, with Sentry, a reference system design for monitoring agents at the hardware level.

OpenShell traces activity and applies policies while agents run. Nvidia says the software can be extended beyond its Vera CPUs to third-party computing platforms. Sentry uses BlueField-4 data processing units as an independent watchdog and is designed to isolate an agent quickly if it attempts to cross its permitted boundaries.

The launch broadens Nvidia's pitch beyond the processors used to train and run AI models. As businesses give agents access to company data, software tools and automated workflows, controls over what those agents can do become part of the infrastructure decision. Nvidia listed a wide group of technology and enterprise partners working with elements of the platform. Commercial adoption and the financial contribution of the new tools, however, remain to be established.

China Chip Report Offers a Possible Upside, With Approval Uncertain

A separate report said Chinese authorities had asked companies including Alibaba and ByteDance about planned purchases of Nvidia's RTX PRO 5500 chips. The inquiry was interpreted as a possible sign that some purchases could be allowed. It does not establish that Beijing has granted approval, that the companies have placed orders, or that shipments have begun.

Any route back to Chinese buyers would matter for Nvidia's addressable market, but policy in both China and the United States remains a constraint. The reported discussions concern this specific product and should not be read as a general reopening of all advanced Nvidia chip sales. For investors, the immediate issue is whether indications of interest turn into formal permission and recognizable revenue.

What Investors Will Watch Next

The near-term test is whether Nvidia can sustain its relative strength if oil and Treasury yields remain elevated. A buyback can support sentiment, but it cannot remove the effect of a broader decline in risk appetite. Investors will also watch the timing of actual share purchases, enterprise use of the safety platform and any official decision on RTX PRO 5500 sales in China.

Monday's trading captured a split in the chip market: Nvidia rose on a large capital-return commitment and new AI software plans while the wider market and several semiconductor peers fell. The $235 billion figure is a remaining authorization to be carried out over time, and the China story remains a reported possibility. Those distinctions will determine how much of the day's optimism translates into lasting business results.