Nvidia Raises Dividend to $0.25, Launches $80B Buyback after $91B Forecast
Nvidia forecasted Q2 revenue of $91 billion ±2%, exceeding the $86.84 billion consensus, and unveiled an $80 billion share repurchase program alongside raising its quarterly cash dividend from $0.01 to $0.25 per share. Despite the beat, shares fell over 2% in extended trading as investors weighed AI spending and inference chip competition.
1. Guidance Exceeds Expectations
Nvidia forecasted second-quarter revenue of $91 billion ±2%, topping the $86.84 billion Wall Street consensus. Management highlighted robust demand for its AI training processors as the primary growth driver.
2. Major Capital Return
The company approved an $80 billion share repurchase program and boosted its quarterly cash dividend to $0.25 per share from $0.01. This marks Nvidia’s first significant dividend hike and expands its return of capital strategy.
3. Market Reaction and Competitive Context
Shares declined over 2% in after-hours trading as investors balanced the positive outlook with risks from surging AI infrastructure spending and intensifying inference competition from custom chips at Big Tech and rivals like Intel and AMD.