Do you remember the DeepSeek surge in January? NVIDIA "bottomed out itself"
Despite the sharp decline in stock prices, NVIDIA actively repurchased its own shares, with a total repurchase amount of approximately $3.7 billion from January 27 to February 21, at an average repurchase price of $127.59
In January, U.S. tech stocks plummeted one after another, but NVIDIA actively entered the market to repurchase its own shares, launching a "self-rescue" value investment.
On January 27, DeepSeek impacted the U.S. stock market, as investors worried that DeepSeek's new technology might reduce the investment demand for AI chips and other infrastructure, causing NVIDIA's stock price to plummet by 17%, setting a record for the largest single-day market value evaporation in U.S. corporate history.
In the face of market volatility, NVIDIA CEO Jensen Huang publicly refuted the view that advancements in DeepSeek technology would reduce spending on artificial intelligence. On the contrary, he believes that such technological innovations may further stimulate investment in AI infrastructure, demonstrating a strong faith in the prospects of the company's core business.
Jensen Huang pointed out that although DeepSeek has made progress in the pre-training of AI models, subsequent training remains crucial and requires substantial resources. He emphasized:
"Inference is one of the parts that consumes a considerable amount of computing power."
This viewpoint aligns with NVIDIA's ongoing stock repurchase activities.
From January 27 to February 21, NVIDIA conducted a large-scale stock repurchase, buying back 29 million shares, with a total value of approximately $3.7 billion, at an average repurchase price of $127.59.
The number of shares repurchased during these four weeks exceeded the repurchase volume of any month in the fourth quarter, and the substantial buyback of its own stock not only reflects the company's strong belief that its stock price is undervalued but also provides the market with a perspective to reassess the investment outlook for AI infrastructure.
The company mentioned in a regulatory filing that during the period from January 27 to February 21, it repurchased shares based on a pre-established trading plan. NVIDIA's methods of repurchasing shares are diverse, including transactions in the open market, privately negotiated transactions, structured stock repurchase agreements, or operations according to Rule 10b5-1 trading plans. These trading plans set conditions such as price, quantity, and timing in advance, and when these conditions are met, the transactions are executed automatically.
On Wednesday, February 26, after U.S. stock market hours, NVIDIA released a strong fourth-quarter financial report, but its stock price still fell by 8.5% on February 28, closing at $120.15, indicating that investors still have divergent views on the prospects of the AI industry.
