In the largest ever share buyback plan, Microsoft Corp. has decided to repurchase stocks worth $40 billion in the aftermath of last week’s turmoil at the Wall Street.

Several other companies like HP and Nike are expected to follow suit as Microsoft leads a buyback spree among companies. The software giant announced the largest repurchase deal in history according to which it will buy back about $40 billion in stocks. The company had already announced a $30 billion buyback plan in 2004 July which was later tied up with Procter & Gamble’s repurchase deal of a similar amount announced in August last year.

Along with Microsoft, Hewlett-Packard announced plan to by back stocks worth $8 billion. This is in addition to a previous $8 billion repurchase plan unveiled last year after which the company was left with about $3 billion worth of stocks. According to the company the buyback will offset the dilution caused by employee stock plans. Sports apparel giant Nike has also joined the fray by announcing a buyback plan worth $5 billion.

Microsoft shares rose by more than 3.5% by Monday midday to $26.06. The company’s stocks have fallen since its failed bid to acquire Yahoo! earlier this year and have stayed depressed due to its loss-making online business as well as slow growth in its core areas like Windows and Office.