NVIDIA Adds US$150 Billion to Its Buyback — Dividend Lovers, Hold On | Dividends vs Buybacks

Data as of: buyback authorization per NVIDIA’s 2026-09-28 press release; shares outstanding and buyback amounts are my own calculation from NVIDIA’s FY2026 10-K (SEC XBRL). 30% is the current US withholding rate on dividends for Taiwanese residents; it would change if Taiwan–US double taxation relief legislation takes effect.

This short got 12,000 plays on YouTube. It’s really about a question many people never consider: when a company makes money, how does it give it back to you?

The conclusion in three sentences:

• Dividends and buybacks are both ways a company returns money to shareholders.
• For Taiwanese investors they differ a lot: US dividends have 30% withheld first; buybacks avoid that cut, shares outstanding fall, and each share’s slice of earnings grows.
• But look at the “net” reduction. NVIDIA spent US$40.1 billion on buybacks in a year, yet shares outstanding fell only 0.71%, because employee stock added back nearly 40%.

Where I stand: my core holdings are 0050, the S&P 500 and QQQ, and NVIDIA is one of the largest holdings in the latter two — so how NVIDIA returns money to shareholders matters to me.

What happened?

On September 28, 2026, Jensen Huang appeared on CNBC’s Squawk Box. He was there to talk about a new AI safety product, but the host told him directly: your stock is up 1.7% today because you announced a buyback, not because of the new product.

Huang eventually added: we’re in the largest infrastructure buildout in human history, we’ll generate a lot of cash, and we want to return it to shareholders every year.

The same day, NVIDIA announced another US$150 billion buyback authorization, for US$235 billion remaining in total.

Dividends vs buybacks: what’s the difference?

Example: receive a US$100 dividend from a US stock, and US$30 is withheld first, leaving US$70. If the company instead used that US$100 to buy back shares, you’d pay nothing and your holding would gradually be worth more.

So for Taiwanese investors, US companies returning money through buybacks is usually more efficient than dividends.

But careful: the announced buyback isn’t what you get

A buyback’s effect depends on how much shares outstanding actually fall, net. Many tech companies also issue stock to employees (RSUs) every year, buying back with one hand while adding shares with the other.

I ran the numbers from NVIDIA’s FY2026 10-K:

US$40 billion spent, and nearly 40% of the repurchased shares were added back through employee stock. So when you see news of “a buyback worth tens of billions,” take one more step: did the share count actually fall?

Taiwan stock buybacks need the same check on the announcement: of the three purposes allowed under Article 28-2 of the Securities and Exchange Act, only shares bought back “to maintain the company’s credit and shareholders’ equity” must be retired; shares bought “for transfer to employees” will be issued again later.

So should I prefer dividends or buybacks?

Neither dividends nor buybacks are always better.

First be clear about what you need now:

• Cash flow: dividends are direct and easy, but accept the 30% withholding (US stocks) or the supplementary premium and income tax (Taiwan stocks).
• Letting assets grow: buybacks are more tax-efficient; sell a little when you need money.

I’m a growth investor myself, dollar-cost averaging into index ETFs and selling when I need money. I don’t pick investments by how much they pay out.

One day’s stock price only reflects one day’s news. Whether a company can return cash to shareholders year after year ultimately depends on whether its products sell.

FAQ

The short video

Further reading

Lazy conclusion

懶大

金融科技新創 CEO | 獨立財務顧問

1. NVIDIA adds US$150 billion to its buyback, with US$235 billion remaining
2. Dividends vs buybacks: both return money; Taiwanese investors have 30% withheld on US dividends, but not on buybacks
3. Look at the net reduction: NVIDIA spent US$40.1 billion in FY2026, shares outstanding fell only 0.71%, with nearly 40% added back by employee stock
4. Taiwan buybacks — check the purpose: only those to maintain shareholders’ equity must be retired
5. Choose by need: dividends for cash flow, buybacks are more efficient for growing assets

Knowing where the money goes beats chasing product launches.

📩

訂閱電子報，獲取更多理財觀點

立即訂閱

🔒 免費訂閱，隨時可退訂

Sources

• NVIDIA press release, 2026-09-28 (share buyback authorization)
• CNBC Squawk Box interview with Jensen Huang (2026-09-28); the stock’s gain was stated by the host during the interview
• NVIDIA FY2026 Form 10-K (SEC XBRL companyfacts, CIK 0001045810); shares outstanding and buyback amounts are my own calculation
• Securities and Exchange Act Article 28-2 (Laws & Regulations Database G0400001)

This post shares opinions. It is not investment advice.