[NVIDIA Adjusts Free Cash Flow Metrics, Raising Concerns Over the Sustainability of Its $235 Billion Buyback Plan] BlockBeats News, October 10 — After expanding its stock buyback authorization to $235 billion, NVIDIA has begun emphasizing the return of free cash flow to shareholders after deducting 'strategic uses,' implying that external equity investments will also consume cash that could otherwise be used for buybacks and dividends. However, NVIDIA has not officially modified the traditional formula for calculating free cash flow. Data shows that as of the first half of the fiscal year ending July 26, NVIDIA's net cash outflow for equity investments reached $35.2 billion, while employee stock-related cash withholding taxes amounted to $4.5 billion. Additionally, approximately $9 billion was spent on buybacks to offset equity dilution caused by stock-based incentives. If these expenditures are factored into the adjustments, its free cash flow would drop from the official figure of $69.9 billion to approximately $21.7 billion, a reduction of about 69%. During the same period, NVIDIA added $24.9 billion in long-term debt, partially supporting additional stock buybacks. Although Wall Street estimates its fiscal 2028 free cash flow will exceed $330 billion, if strategic investments continue to expand, the actual cash available for shareholder returns may be significantly lower than what traditional metrics suggest. NVIDIA's investments in AI companies such as OpenAI and Anthropic are also intertwined with its chip sales, raising market concerns about the sustainability of the AI investment boom. [Original Link]