Nvidia Lifts Dividend 2,400% to 25 Cents and Unveils $80 Billion Buyback
Updated
Updated · CNBC · Jun 3
Nvidia Lifts Dividend 2,400% to 25 Cents and Unveils $80 Billion Buyback
3 articles · Updated · CNBC · Jun 3
Summary
25 cents a share—up from 1 cent—will be paid June 26 to holders of record on Thursday, alongside a new $80 billion repurchase plan.
Parabolic AI-chip demand in data centers has turned Nvidia’s growth surge into a cash-flow windfall, giving it room to fund both expansion and larger shareholder returns.
UBS said dividend futures rose 2 to 3 points after the move, reflecting expectations Nvidia’s payout could lift 2027 consensus estimates and pressure other cash-rich tech companies to raise or start dividends.
Tech is now the S&P 500’s biggest dividend payer, but yields remain slim—Nvidia at 0.46%, Apple 0.35%, Microsoft 0.85%—leaving debate over whether Nvidia is a template or an outlier.
Investors and advisers pointed to Amazon as a long-term candidate to initiate a dividend, while more mature chip and software names such as Broadcom, Texas Instruments, Qualcomm, Cisco and Oracle were seen as nearer-term dividend growers.
With Big Tech's free cash flow at a decade low, are new dividend promises a sign of strength or a risky gamble?
Nvidia's customers are now its rivals. Can its dominance last as they build their own cost-effective AI chips?
NVIDIA’s $80B Buyback and 25-Fold Dividend Surge: Record Q1 2026 Results and AI Market Leadership
Overview
NVIDIA has captured attention with a record 25-fold dividend increase and a new $80 billion share buyback, boosting its total buyback capacity to about $118 billion. These bold moves are backed by outstanding Q1 2026 results, including $81.6 billion in revenue—$75.2 billion from its Data Center segment—and a GAAP net income of $58.3 billion. NVIDIA plans to return about half of its free cash flow to shareholders in 2026, reflecting strong confidence in its future. This strategy highlights NVIDIA’s commitment to rewarding investors while capitalizing on its leadership in AI and high-performance computing.