Nvidia authorizes $150 billion in new buybacks, the largest single repurchase program ever

Summary

The hosts discuss Nvidia's reported $150 billion additional share repurchase authorization, bringing its total buyback capacity to roughly $235 billion. They highlight its market capitalization, strength during a weak market session, and unusual options activity, while expressing a strongly bullish view and warning against betting against the stock.

• The hosts describe the new $150 billion authorization as the largest single corporate buyback program ever.
• They initially put Nvidia's combined buyback authorization at $235 billion, later citing a $235 billion–$238 billion range.
• Nvidia's market capitalization is described as exceeding $5 trillion, with Pete citing $5.5 trillion.
• The hosts compare Nvidia's valuation and financial scale with the Russell 2000 and challenge bubble concerns.
• They highlight unusual activity involving 10,000 options at the $235 strike near the end of a trading session; option type and expiration are not specified.
• Nvidia shares are described as trading above $230 and outperforming a weak broader market.
• The hosts say the highlighted options performed well and warn against shorting Nvidia.

1. 0:00

   Let's talk about Nvidia.

2. 0:01

   >> Yep.

3. 0:02

   >> Because here we've got a stock that uh they already had a pretty significant buyback and now they've just announced the biggest buyback in corporate history because they announced that they're putting another $150 billion

4. 0:21

   on top of what they already had. That brings their buyback to $235 billion. And just to put that in a little perspective, folks, Nvidia is worth over5 trillion dollars right now. And it's up big again today.

5. 0:38

   And we'll show you the unusual when it's Pete's turn to talk. But um so they're up over five trillion. Do you know that's more than the entire market cap of the Russell 2000? [laughter] Do you also know that they make about

6. 0:53

   $135 billion, Pete? uh in Rev and that is more than the entire Russell as well. In fact, the entire Russell loses money when you add all of them in. All 2,000

7. 1:10

   stocks of the Russell, Pete, when you add them all in, they're negative. This one, for anybody sitting there saying, "Well, it's just a bubble, you know, you can't buy into this." Or, "WHAT ABOUT THE LAW OF LARGE NUMBERS?" [laughter] Five times the law of large numbers. It went through a trillion, two trillion,

8. 1:29

   three trillion, four trillion, five trillion dollars. Pete, take us into the unusual activity that occurred there.

9. 1:36

   >> All right, I will. And I'll tell you what, it's it's 5.5 trillion at this point in time as well, John. Yeah, so we've we've had some unusual in this one. It's been a great run. There it is right there in front of you. And you can see you can see by the date. You can see the time towards the very end of the day. Quite frankly, that's always an interesting way to approach it. But

10. 1:56

    catching this thing at the right time, right? I mean, you know, this this is pretty phenomenal. These are these are the 235s. The stock got all the way up to 233, I think, John, or very close to that. I know it got over 230 there.

11. 2:09

    You've got it at 23159.

12. 2:11

    Um, but this is a this is a pretty amazing thing. And 10,000. That's a nice size sort of a unusual option activity, I would say. So towards the very end of the trading session, they would decided to go after these things. And wow. Uh have they produced? Yep. They've done pretty dagone well on that as well.

13. 2:29

    John, this is a bigger um like when you were talking about these buybacks, this is bigger than than Apple or anybody else. I mean, this is just a monstrous number. So to see what this is added on with what they already had at 235 billion to 238 billion, just a really

14. 2:47

    incredible number. And in a in a day where the market itself is not doing very well, it's pretty amazing how well Nvidia is doing, John. I mean, sometimes they get affected by this the rest of the market. They're not getting a affected at all right now.

15. 3:02

    >> No. Uh they are a juggernaut, folks. And for anybody who's been a denier, like uh yeah, if you're hearing that, Dr. Bur.

16. 3:12

    Um, I'd say be careful because this one will clean you out if you want to bet against this one. You can bet against some of the others and be right for a couple weeks, but you don't want to bet against Jensen Wong.

17. 3:26

    >> No.

18. 3:45

    >> [music]

Transcript from the show's YouTube captions; automatic captions may contain errors. Educational content, not investment advice.