Key Points
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Apple has reduced its share count by 43.2% over the past 15 years under Tim Cook.
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Nvidia returned 60% of its free cash flow to shareholders in the latest fiscal year.
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In the most recent quarter, Apple spent $25.95 billion on buybacks and $4 billion on dividends, while Nvidia spent $19.73 billion on buybacks and $6.05 billion on dividends.
Under Tim Cook, Apple’s market cap increased from $350 billion to over $4 trillion, achieved through regular product releases and service expansions. However, with the recent appointment of John Ternus as CEO, analysts anticipate a shift towards greater innovation over buybacks, especially as Apple has already reduced its buyback budget from a peak of $100 billion to $82.2 billion.
Nvidia’s aggressive capital return strategy includes significant buybacks that are expected to continue, as it aims for a 70% year-over-year revenue increase. The company’s fiscal health positions it to potentially surpass Apple in buybacks if both continue on their current trajectory.
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