US Companies' Stock Buyback Surge: Nvidia Joins the Trillion-Dollar Trend

US Companies Are Repurchasing Stock at a Historic Pace

American companies are advancing stock buybacks at a historic pace, with Nvidia (NVDA) becoming the latest company to join the long list, demonstrating US corporate confidence in the economy. According to data compiled by Birinyi Associates, the amount of repurchases announced by US companies has exceeded $1 trillion by August 20, the shortest time ever to reach this milestone, a record previously set in October of last year.

Corporate Giants Lead the Buyback Charge

In recent months, corporate giants – especially in the financial and technology sectors – have approved large-scale stock buyback plans. On Wednesday, Nvidia announced plans to repurchase $60 billion worth of stock after posting its quarterly results after trading hours. In May of this year, Apple (AAPL) announced it would repurchase $100 billion worth of stock. Alphabet (GOOGL), JPMorgan Chase (JPM), Goldman Sachs Group (GS), Wells Fargo (WFC) and Bank of America (BAC) have also announced buyback plans of at least $40 billion.

Corporate Confidence and Stock Market Support

“The ultimate dip buyer in the market is going to be around, and that’s the corporations themselves,” said Jeffrey Yale Rubin, president of Birinyi Associates. “Companies are earning well, they have enough money for capital expenditures, and stock buybacks are a good way to reward investors and company owners.” Last month, the total amount of stock repurchases announced by companies reached $166 billion, the highest monthly figure for July, due to the concentration of buyback plans for the largest financial and technology companies in the United States. A series of stock buyback plans indicates increased confidence among corporate executives, providing crucial support for the US stock market, and the S&P 500 Index (SPX) has returned to its historical highs in recent weeks.

Momentum Expected to Continue

Rubin expects this momentum to continue until the end of the year, predicting that the amount of repurchases announced will reach $1.3 trillion, and the amount of repurchases completed will reach a record high. “If there is no sharp slowdown in the economy, we expect the amount of stock repurchases completed in 2026 to reach $1.2 trillion, which would be a new record,” Rubin wrote in a report released on August 26. However, corporate repurchases of shares have provoked dissatisfaction among some members of the Trump administration, and this topic was raised in the debate surrounding Trump's signature tax law.

Criticism of Buybacks

On Wednesday, Treasury Secretary Baisen criticized Boeing (BA) on Fox Business for carrying out “large-scale” stock repurchases instead of investing in research and development. These criticisms highlight the ongoing tension between rewarding shareholders and investing in long-term growth. Stock buybacks can artificially inflate earnings per share (EPS), making a company appear more profitable without necessarily improving its underlying business. This can benefit shareholders in the short term, but it may also divert resources from activities that could generate more sustainable growth in the long run. Companies considering stock buybacks often weigh the benefits against potential alternative uses of the capital, such as research and development, acquisitions, or paying down debt.