Nvidia Stock Holds Near $228 as $150 Billion Buyback Plan Fuels AI Confidence

Key Points

• Nvidia announced a new $150 billion stock buyback authorisation, increasing its total repurchase capacity to $235 billion through 2028.
• The buyback plan signals management confidence in Nvidia’s long-term AI growth strategy while returning capital to shareholders.
• Nvidia continues to generate strong cash flow from demand for AI chips, supporting both expansion and shareholder returns.
• NVDAUSD is trading around 228.50, with short-term momentum weakening after failing to sustain moves above 229.50.
• The stock is consolidating near its MA 9 indicator, leaving traders focused on whether buyers can regain control or whether further profit-taking emerges.

Market Move

Nvidia (NVDAUSD) traded slightly lower at around 228.50, down 0.19%, as the stock moved within a narrow intraday range between 228.15 and 229.84.

The price initially held above the 229.00 area before facing selling pressure. Price gradually declined towards 228.15, where buyers stepped in and attempted a recovery back towards 228.50.

Why Traders Are Watching

The latest move comes after Nvidia announced a major expansion of its share buyback programme. The company increased its stock repurchase authorisation by $150 billion, bringing total available buybacks to $235 billion through 2028.

The announcement follows Nvidia’s continued investment in artificial intelligence infrastructure, with the company maintaining strong demand for its AI chips and expanding its software ecosystem.

Investors are now focused on Nvidia’s programme as share repurchases reduce the number of shares outstanding, which can increase earnings per share if profits remain stable. The market is assessing whether AI investment can continue its upward trajectory and whether Nvidia’s repurchase plan can provide additional support after its valuation multiple has declined from previous AI-driven highs.

Key Trading Levels

NVDAUSD is currently trading near 228.50, close to the MA 9 indicator. The price action shows a short-term consolidation phase, with buyers defending the 228.15 support area while sellers remain active near 229.00 to 229.50.

A sustained move above the resistance zone could indicate improving momentum, while a break below support may suggest further short-term weakness.

Bullish and Bearish Setups

A bullish scenario could develop if NVDAUSD breaks above 229.00 and holds above the 229.50 resistance zone. The price is recovering from the intraday low near 228.15, but buyers have yet to push the stock back above previous resistance. If buyers successfully reclaim 229.50, the next focus would be the 229.84 session high.

The bearish setup focuses on the 228.15 support level, where buyers recently stepped in after the decline from the session high. If sellers push NVDAUSD below this area, the stock could retest 228.00 and potentially extend losses towards 227.50.

Disclaimer

The price levels and market scenarios above reflect the author’s assessment at the time of writing. They do not represent financial advice or an official recommendation from VT Markets. Traders should conduct their own analysis and manage risk carefully.

NVDAUSD Prediction: What’s Next

NVDAUSD’s next move will be influenced by AI growth expectations and broader market conditions. The expanded $150 billion buyback programme could support investor confidence as the company continues to generate strong cash flow and continue its growth strategy. Continued demand for AI chips from cloud providers, data centres and technology companies could also boost Nvidia’s earnings.

However, several factors could create downside pressure. A slowdown in AI infrastructure spending could raise concerns over whether Nvidia can maintain its current momentum. Rising Treasury yields or expectations of higher interest rates may also weigh on technology stocks. In addition, increased competition from other semiconductor companies and custom AI chip development could affect expectations for Nvidia’s future market share and margins. Broader risk-off sentiment, geopolitical uncertainty or weakness across the Nasdaq and semiconductor sector could also trigger profit-taking.

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