Key Points
-
At GTC 2026, Nvidia announced plans to return a record amount of cash to shareholders.
-
Nvidia is generating more cash flow than it needs to reinvest in the business.
-
Dividends could complement Nvidia’s stock buybacks and make the stock more appealing to long-term investors.
During a financial analyst session at GTC 2026, Nvidia’s CEO Jensen Huang and CFO Colette Kress revealed the company’s plans to allocate at least 50% of its substantial free cash flow (FCF) toward shareholder returns via buybacks and dividends. In fiscal 2026, Nvidia reported revenues of $215.9 billion and FCF of $96.6 billion, resulting in $41.1 billion dedicated to stock buybacks and dividends, comprising 42.6% of its FCF.
Analysts predict Nvidia’s FCF could reach $163.3 billion in fiscal 2027, allowing for over $80 billion in expected buybacks and dividends. Currently, Nvidia pays a quarterly dividend of $0.01 per share, amounting to $974 million in fiscal 2026, with the majority of its capital return program focused on buybacks. The company’s evolving business model, increasingly incorporating software solutions for AI, positions it to enhance these returns, potentially including a more substantial dividend increase in the future.
