Chipmaker Nvidia has expanded its share buyback programme by $150 billion, taking its total repurchase capacity to $235 billion through fiscal 2028, according to reports.

The move signals the company’s confidence in its cash flows even as it spends heavily on next-generation chip development. Share buybacks return money to investors by reducing the number of shares in the market.

Nvidia has been the biggest winner of the artificial intelligence boom, with its graphics chips powering data centres around the world. Its stock has surged in recent years on strong demand for AI hardware.

The buyback announcement comes amid questions about how long the AI spending cycle can last. Some analysts have warned that tech giants may slow their chip purchases if returns on AI investments disappoint.

For now, the expanded buyback suggests Nvidia’s board expects demand to stay strong. Investors welcomed the news, with the company’s shares moving higher after the announcement.