Prediction: Nvidia Stock Will Double After This Historic $150 Billion Move
2026-10-01 12:10
•Harsh Chauhan •The Motley Fool
•••••• •• Axe Cap view
Nvidia’s $150 Billion Buyback: What It Means for SA Investors
Nvidia’s massive share repurchase signals bullish AI bets, but South African investors face a tricky trade-off.
Nvidia’s $150 billion buyback is more than a headline number—it’s a bold statement from management about their confidence in the AI-driven future. The company now dominates the AI chip market with roughly 80% share, and expected revenue growth of 70% by fiscal 2028 is eye-popping. For South African investors, Nvidia itself isn’t accessible on the JSE, but the USD/ZAR exchange rate offers a critical lens. A stronger dollar—fueled by US tech optimism—tends to put pressure on the rand, making imports pricier and potentially weighing on local consumption. Domestic giants like Prosus, which have significant tech exposure, could benefit indirectly if global AI growth lifts tech valuations. Still, rand weakness could impact South African corporates reliant on imported tech or fuel, such as Sasol. I’d watch USD/ZAR closely and consider tech-linked JSE stocks selectively, especially Prosus, while being mindful of rand volatility. If global tech sentiment cools or US interest rates spike, the dollar rally may falter and hurt this trade. this is just our opinion and not financial advice
Watch USD/ZAR for dollar strength as a signal; consider selectively buying Prosus on dips due to its tech exposure. Avoid overexposure until the dollar and US tech growth show sustained stability.
- USD/ZAR
- Prosus
- US interest rate hikes slowing tech growth
- rand strengthening unexpectedly weakening commodity earnings
6/10
Nvidia announced a historic $150 billion increase in share repurchase authorization, bringing total authorization to $235 billion through fiscal 2028. The article argues this signals management confidence in the company's undervaluation, citing Nvidia's 120% YoY earnings growth, 29x trailing P/E ratio (below Nasdaq average of 39), and expected 70% revenue growth in fiscal 2028. The analyst projects the stock could reach $526 by end of fiscal 2029 (132% upside) based on expected EPS of $21.06 and a 25x earnings multiple.
Our take is based on reporting first published by The Motley Fool.