BofA urges Nvidia dividend boost to 0.5–1% with $26–51B outlay; Goldman sees 39–40% Azure growth
Bank of America analysts propose Nvidia raise its dividend yield to 0.5%–1% by allocating $26–51 billion or 15%–30% of 2026 free cash flow to narrow its valuation gap with peers. Goldman Sachs maintains a Buy on Microsoft after Q3 revenue of $82.9 billion and non-GAAP EPS of $4.27, highlighting 39%–40% Azure growth guidance.
1. BofA Calls for Higher Nvidia Dividend
Bank of America analysts led by Vivek Arya recommend Nvidia lift its dividend yield from 0.02% toward 0.5%–1%, requiring $26–51 billion or 15%–30% of projected 2026 free cash flow, to attract income-focused funds and close its price-to-earnings and free cash flow valuation discount to Magnificent Seven peers.
2. Goldman Stands by Microsoft with Azure Guidance
Goldman Sachs reiterated a Buy rating on Microsoft with a $610 price target after the company delivered $82.9 billion in Q3 revenue, up 18% year over year, and non-GAAP EPS of $4.27, 5% ahead of estimates, while forecasting 39%–40% constant-currency growth for Azure in fiscal Q4.