NVIDIA plans to return even more cash to its shareholders after another record quarter powered by the demand for Artificial Intelligence. The company approved an additional 80 billion dollars in stock buybacks and sharply raised its quarterly dividend.
According to filings and company statements, the quarterly dividend will rise to 25 cents per share from just 1 cent. This move marks one of Nvidia’s biggest changes to its payout policy and signals confidence in its cash generation.
NVIDIA’s decision follows another blowout earnings report, where it posted record revenue and profits driven by its data center chips. The company reported revenue of about $81.6 billion in the latest quarter and non‑GAAP earnings per share of about $1.87.
Management also guided for second-quarter revenue of about 91 to 92 billion dollars, well above Wall Street estimates compiled by LSEG. Markets had already priced in high expectations, and Nvidia’s stock slipped slightly in after‑hours trading even as results beat forecasts.
Details of the NVIDIA $80B Buyback Plan
Before this announcement, Nvidia still had tens of billions of dollars left under an earlier repurchase plan. The board has now authorized an additional 80 billion dollars, with some reports noting that the new plan has no set end date.
In the most recent quarter alone, Nvidia repurchased about 19.3 billion dollars of its shares and paid roughly 243 million dollars in dividends. The fresh authorization gives the company room to keep buying back stock as long as cash flows remain strong and the board supports continued repurchases.
The jump from 1 cent to 25 cents per share means a much larger cash payout to shareholders each quarter. Even with that increase, Nvidia’s dividend yield remains low compared with many mature companies because its share price is so high.
The buybacks and dividends show Nvidia’s intent to share more of its AI-driven profits with investors while the company continues to invest extensively in expansion. But the length of the current AI spending cycle and competitors’ responses will determine future performance, some analysts say.
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