Nvidia boosts share buyback by record $150B as AI boom fuels growth

Nvidia has boosted its share buyback authorization by a record $150 billion, surpassing Apple's $110 billion approval in 2024, as the chip giant's stock trades near its lowest valuation in more than a decade.

The additional authorization LIFTS Nvidia's remaining buyback capacity to $235 billion, which it expects to use through fiscal 2028, as surging demand for AI training and inference fuels cash generation. Shares of Santa Clara, Calif.-based Nvidia, which has a market cap of more than $5.5 trillion, rose more than 2% in morning trading.

The additional authorization LIFTS Nvidia's remaining buyback capacity to $235 billion, which it expects to use through fiscal 2028, as surging demand for AI training and inference fuels cash generation.

Reference Sources

1. markets - NVDA or AMD: Cathie Wood Buys $78.8M of One AI Stock Today, Sells the Other
2. newyorkpost - Nvidia boosts share buyback by record $150B as AI boom fuels growth
3. cnbc - Nvidia share buyback plan gets $150 billion boost
4. barrons - Nvidia’s Next Win May Be Better Than Stock Buybacks
5. barrons - Nvidia Stock Is Closing In on a Record High. Technicals Point to More Gains.

Anthropic warns of existential AI risks to humanity in IPO document

Anthropic, the US chatbot developer, has warned investors that advanced AI technology could pose "catastrophic or existential risks to humanity" even as it prepares for a blockbuster stock market listing.

The company reportedly laid out the risks of potential human extinction in its initial public offering (IPO) prospectus.

The prospectus, which usually sheds light on a company’s financial information, growth plans and potential risks to investors, has reportedly been circulated among a small group of partners, but has not yet been made public.

Anthropic dedicated almost a third of the prospectus to detailing risk factors.

This included its AI models, which could exhibit self-preserving behaviours, including attempts to resist shutdown, to conceal or manipulate information and behaviour resembling blackmail.

Anthropic could face legal claims from customers and users over the actions of rogue AI agents. However, the legal framework is uncertain, the company said in the prospectus for its stock market debut seen by Reuters.

While it gears up for what could be the largest initial public offering ever, Anthropic faces the possibility of vast unknown legal risk if its agentic AI technology--designed to maintain deep access to customers' systems and run autonomously for days at a time--goes rogue.

Reference Sources

1. standard - Anthropic warns of ‘existential risks to humanity’ of AI in IPO plans – reports
2. theguardian - Anthropic warns of existential AI risks to humanity in IPO document
3. thestarmy - Exclusive-Anthropic says rogue AI agents pose uncertain legal risk for the company
4. barrons - What This ETF Can Tell Us About Anthropic’s IPO Plan
5. theguardian - Anthropic warns of AI existential risk as concerns emerge over Metas Muse and OpenAIs model | First Thing

Japan's TDK, Taiyo Yuden ally on next-generation AI components

Japanese electronic parts makers TDK and Taiyo Yuden have agreed to work together on developing Next-Generation electronic components for use with artificial intelligence (AI).

The companies will develop advanced Multilayer ceramic capacitors (MLCCs), inductors, and other components, cooperating to meet the high performance levels required for AI servers and physical AI applications.

The agreement also includes discussing a potential capital alliance.

TDK's technologies include heat resistance and low-profile molding, both developed for automotive components.

The companies will combine this with Taiyo Yuden's strengths in small, high-capacity components, honed for Smartphones. About 90% of Taiyo Yuden's sales come from MLCCs and Inductors.

For TDK, passive components--including MLCCs and inductors--account for around 20%. Demand for AI servers is rising fast, driving growth for both companies.

The companies also plan to work together in production and materials sourcing.

There is potential for contract manufacturing between the companies, said Tomomitsu Fukuda, senior executive operating officer at Taiyo Yuden. Electronic components like these are one area where Japanese companies have an edge.

Murata manufacturing has a leading share of the world's MLCC market at around 40%, according to data from Japan's Ministry of Economy, Trade and Industry.

Reference Sources

1. nikkei - Japan's TDK, Taiyo Yuden ally on next-generation AI components

The CommonWealth English daily news digest is a service curated by CommonWealth English team with the help of AI tools.  

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