Nvidia Shifts Focus from Growth to Shareholder Rewards

Nvidia is shifting its focus from rapid growth to rewarding shareholders through dividends and stock buybacks. The company has been ramping up its capital return program, returning a record $26 billion to shareholders during its fiscal second quarter.

This move mirrors Apple's strategy of using dividends and stock repurchases to support its valuation. Nvidia's quarterly dividend was increased from $0.01 to $0.25 per share in May, and the company has authorized an additional $80 billion in share repurchases.

Nvidia reported fiscal second-quarter revenue of $96.2 billion, a 106% increase from the previous year, with adjusted earnings reaching $2.22 per diluted share. The Data Center revenue soared 117% year over year to $89 billion, driven by demand for computing infrastructure powering generative AI and other advanced workloads.

The company's capital return strategy has changed significantly, with Nvidia planning to return at least 50% of free cash flow to shareholders during calendar 2026. The next quarterly dividend is scheduled to be paid October 1 to shareholders of record as of September 10.