Nvidia said it will return 50% or more of free cash flow to shareholders this year, next year and beyond, after lifting its quarterly dividend to $0.25 a share from $0.01.
Q1 free cash flow reached $48.5 billion on record revenue of $81.6 billion, giving the chipmaker more room to boost buybacks and dividends as cash keeps piling up.
AI demand is driving that surge: data-center revenue jumped 92% to $75.2 billion, and Nvidia forecast Q2 revenue of $91 billion, up 95% from a year earlier.
Using Wall Street profit estimates and Nvidia's current cash-flow margin, the policy could translate into roughly $110 billion of shareholder returns over the next two years.