Nvidia Mimics Apple's Playbook on Capital Returns

Nvidia's explosive growth has been a major topic of discussion among investors in recent times. However, a different narrative is emerging - the company is shifting towards becoming more like Apple when it comes to capital returns.

The latest fiscal second-quarter results for 2027 saw Nvidia blow past expectations with revenue reaching $96.2 billion, up 106% year over year, and adjusted earnings per share of $2.22, beating analyst estimates of $2.09.

Data center revenue surged 117% to $89 billion, highlighting the persistent demand for AI infrastructure. The company also issued guidance for the next quarter in the range of $105.8 billion to $110.1 billion, with a possible top end of $100 billion quarterly revenue.

Nvidia returned a record $26 billion to shareholders during the quarter, including $20 billion in stock repurchases and $6 billion in dividend payments. The company raised its quarterly dividend from $0.01 per share to $0.25 per share earlier this year, a 2,400% increase.

Nvidia's leadership appears to be emulating Apple's playbook of massive buybacks and steady dividend growth. Chief Financial Officer Colette Kress stated on the earnings call that the company intends to return at least 50% of free cash flow to shareholders, with a year-to-date figure already reaching 60%.