Nvidia Smuggling Case Fails to Dent Stock as Buyback War Chest Swells to $235 Billion
Published on 10/03/2026 at 05:30 | Editorial boerse-global.de
Federal prosecutors in the United States moved against a technology export channel on Thursday, arresting Greg Lui, the head of Earthmade Computer, on allegations that he orchestrated the illegal shipment of high-tech equipment to China. The case centers on servers valued at more than $300 million, hardware that packed Nvidia's A100 and H100 graphics processors. According to media reports, the goods were routed through transit points in Malaysia and Singapore. Nvidia appears in the case documents only as the manufacturer of the chips — not as a defendant.
The prosecution underscores how tightly Washington now polices semiconductor supply chains, and how central export enforcement has become to the entire industry's calculus. For Western chipmakers, airtight compliance remains the operative priority even as global appetite for computing accelerators stays red hot.
A Stock Within Striking Distance of Its Peak
Investors barely blinked at the news. Nvidia shares finished Friday's session at EUR 207.85, leaving the stock just shy of its 52-week high of EUR 211.00. The broader tech sector had already caught a lift from softer US labor market data and falling bond yields, a friendlier rate backdrop that pushed the equity up 2.2% to EUR 210.00 at one point — a mere 0.5% below that annual peak.
The real fuel, though, comes from the company itself. On Monday, Nvidia's board authorized an additional $150 billion for share repurchases. Combined with earlier approvals, that leaves $235 billion available for buying back stock through fiscal year 2028, which ends January 30, 2028. A program of that magnitude steadily tightens the supply of shares in the market and underpins earnings per share — and it sends an unmistakable signal that management views its own valuation as anything but stretched.
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Analysts Line Up Behind the AI Leader
Wall Street's confidence in Nvidia's pole position shows no sign of fading. Barclays analyst Thomas O'Malley reaffirmed his buy rating on Thursday, pointing to spending trends among major cloud providers that suggest at least $30 billion in additional revenue potential in each of 2026 and 2027. Morgan Stanley, meanwhile, restored the stock to its top semiconductor pick following meetings with CEO Jensen Huang and CFO Colette Kress.
That optimism rests partly on Nvidia's refusal to coast on its hardware dominance. The company rolled out its Open Agent Safety Platform on Monday, a package built around the OpenShell software and the Sentry reference design for governing and monitoring autonomous AI agents. More than 100 organizations are already working with these platform technologies, according to the company, and the software runs on third-party architectures from Arm and Intel as well.
New Materials, New Hardware on the Horizon
Product-side reports point to further manufacturing steps. Nvidia is testing new resin materials for printed circuit boards destined for the Rubin Ultra NVL576 Switch Tray, with production slated to begin in the second half of 2027. A variant of the DGX Spark equipped with 64 gigabytes of memory is also set to hit shelves on October 23 through partners including Acer, Asus and HP.
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Taken together, the picture is one of a company whose growth story remains intact even as regulators tighten the screws on how its most powerful chips reach the world. Neither the enormous hyperscaler demand nor the innovation cycle around AI agents shows signs of fatigue — and with a $235 billion buyback cushion beneath it, the path of least resistance for the stock still points upward.
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