Nvidia Eyes $26–$51B Dividend Plan, Joins Oklo on AI Nuclear Reactor Simulations
NVDA•Bank of America suggests Nvidia boost its dividend yield to 0.5%–1% by allocating 15%–30% of projected 2026 free cash flow ($26–$51 billion), aiming to close a 30% valuation gap with AI peers. Nvidia also joined Oklo and Los Alamos National Lab to apply AI-driven simulations to accelerate nuclear reactor development.
1. Bank of America Dividend Recommendation
Bank of America analysts propose that Nvidia increase its dividend yield from 0.02% toward 0.5%–1%, requiring $26–$51 billion in returns (15%–30% of projected 2026 free cash flow) to attract income-focused funds and narrow its valuation discount relative to peer AI giants.
2. Nvidia’s Valuation Gap
Despite generating over $400 billion in free cash flow across 2026–27 combined—comparable to Apple and Microsoft—Nvidia trades at a 30% lower market cap-to-FCF multiple and at 26x and 19x 2026/2027 earnings estimates versus a peer average of 49x and 41.5x.
3. Oklo Collaboration on Nuclear AI
Nvidia has partnered with Oklo and Los Alamos National Lab to deploy its AI-driven simulation tools for nuclear reactor design, aiming to accelerate fuel research, validate reactor models and address energy bottlenecks in large-scale AI data centers.
4. Competitive Pressure from AI Infrastructure Peers
Smaller infrastructure providers CoreWeave, Nebius and Applied Digital have outperformed Nvidia with 65%, 80% and 37% gains respectively in 2026, highlighting investor appetite for high-growth AI service firms whose returns currently eclipse Nvidia’s performance.
