Nvidia's $46 Billion Shareholder Return May Just Be the Beginning
Nvidia has become the world's most valuable company, with a market cap of over $5.1 trillion as of September 15.
The central chip designer for the AI boom has seen unprecedented demand, generating huge amounts of cash that it's now beginning to return to shareholders instead of solely reinvesting in growth.
Through the first two quarters of its current fiscal year, Nvidia has returned around $46 billion to shareholders through dividends and stock buybacks.
The company's quarterly dividend was boosted by 2,400% in June from $0.01 per share to $0.25 per share, and another hike might be coming due to Nvidia's strong financial position with $99.4 billion in cash, cash equivalents, and short-term securities on its books.
Nvidia's business has plenty of runway for growth, allowing it to aggressively reinvest and reward shareholders more handsomely.