Nvidia Boosts Share Buyback Program by $150 Billion | Bloomberg Intelligence

Nvidia’s $150 billion increase in its share buyback plan was framed as a sign of extraordinary cash generation and a signal that management still sees strong near-term AI demand. The analyst said the move could mean the stock is undervalued, but it also reflects that Nvidia is spreading capital across the AI ecosystem and still expects roughly $200 billion of cash flow this year and about $330 billion next year by consensus.

The discussion broadened into whether AI momentum is slowing. The analyst argued that while there are longer-term concerns about control and competition, the market still sees enough demand to sustain one to two more years of growth. For hyperscalers, he expected spending to keep rising next year, though not as fast as in 2026, with supply constraints, chip capacity, energy and data-center buildout acting as the main bottlenecks.

Meta’s Muse was presented as a serious threat to media and telecom, especially businesses with high customer inertia such as broadband and wireless. The analyst said agentic AI could make shopping, switching and negotiating easier, raising churn and pressuring pricing, with 35% to 40% of consumers already willing to switch if the economics improve. Another segment focused on Paramount-Skydance’s planned Warner Bros. Discovery deal, where the credit analyst said the company expects to sell about $12.4 billion of junk-rated second-lien notes alongside much larger first-lien debt.

The final conversation turned to restaurants, where the industry group said rising wages, food costs, diesel prices and labor pressure are squeezing already thin margins. The CEO described a business environment of “continuous volatility,” with profit margins falling toward 2% to 4%, while pricing certainty and value menus have become more important for attracting guests.