Nvidia Announces Major Dividend and Buyback Increase
Nvidia (NASDAQ: NVDA) has approved a substantial 25-fold increase in its quarterly dividend, raising it from $0.01 to $0.25 per share, and authorized an additional $80 billion for share repurchases. The company’s fiscal first quarter, which ended on April 26, 2026, saw revenue skyrocketing by 85% year-over-year to $81.6 billion, with a notably strong performance in its data center segment, contributing $75.2 billion.
Nvidia’s free cash flow reached $48.6 billion—nearly double the previous year’s $26.1 billion—allowing it to comfortably cover these increased payouts. In this quarter alone, Nvidia returned a record $20 billion to shareholders. However, the company has faced challenges, including a drop in revenue from China and increasing competition as major customers begin developing their own AI chips.
Despite these risks, Nvidia’s stock remains attractive, trading around $215, supported by a forward price-to-earnings ratio in the low 20s. Nonetheless, market response has been muted, reflecting ongoing concerns about competition and future growth amidst high expectations.
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