Nvidia Adds Record $150 Billion to Stock Buyback

And there it goes, money so spraying out of the circular vortex. Won’t be long now.

That’s not the intended effect of a stock buyback.

In the world of High Frequency Trading, a stock buyback fucks everyone that doesn’t have HFT.

The intent of a stock buyback is an alternative means of divedend distribution, by causing the stock price to rise. It also allows the company to resell those stocks it bought back later to generate revenue if, and when, it needs it. It can also use that stock to compensate employees.

Its a good move for nVidia itself. It positions itself to continue to reap the benefits of the AI bubble as it has been doing all along. It also gives it a means of survival when the bubblr bursts.

Of the companies that aren’t hemorrhaging money its the hardware companies.

Personally, I’m generally favor of this move. Why?

When the bubble bursts, they can finally ditch the LLM market and go back to actual useful AI/ML & hardware.

Like, a startup my employer helped with is using AI to read biopsies and other medical imaging faster and more accurately than ever. The dataset it is trained on is enormous. Millions of images tagged only with the diagnostic information, all de-identified. A pathologist still has to sign off on it, and that pathologist is the point of accountability.

But the LLM companies need to die first. Hopefully this is a sign that the vortex is consuming the right antagonists.