Amazon, Alphabet, Microsoft, and Meta are reducing share buybacks to fund AI infrastructure. The sector expects combined spending on data centers and specialized chips to reach hundreds of billions. In Q4 2025, buybacks for these tech giants fell to their lowest level since early 2018.
Nvidia is accelerating capital returns to shareholders despite the broader industry trend. The company authorized a $60 billion share repurchase program in August 2025. Nvidia plans to return a significant portion of its 2026 free cash flow through buybacks and dividends. This divergence highlights Nvidia's financial strength as competitors pivot toward long-term AI investment.