Nvidia shares hit a record high above $236 on Thursday, pushing the company’s market cap toward $5.7 trillion, after the chipmaker posted quarterly revenue and earnings that blew past Wall Street estimates and announced an $80 billion share buyback program. The stock has surged more than 25% year-to-date and over 70% in the past 12 months, fueled by insatiable demand for its AI processors.
Record quarter and raised outlook
For its fiscal first quarter, Nvidia reported revenue of $81.6 billion, a record and above the $78.5 billion analysts had expected. Adjusted earnings per share came in at $1.87, also topping consensus. The company guided for second-quarter revenue between $89.2 billion and $92.8 billion, again above Wall Street forecasts.
The numbers underscore Nvidia’s dominance in the market for artificial intelligence chips, a position that has turned it into one of the most valuable companies in the world.
Dividend jumps 25-fold, buyback authorized
Nvidia also announced it will raise its quarterly dividend from a penny to 25 cents per share — a 25-fold increase. For CEO Jensen Huang, who owns 871.7 million shares, the dividend boost means annual income of roughly $870 million. The company separately authorized a new $80 billion share repurchase program, signaling confidence in its cash flow and long-term prospects.
Chinese tech giants eye H200 processors
In a development that could further lift sales, Chinese tech firms Alibaba, Tencent, ByteDance, and JD.com are reportedly preparing to buy Nvidia’s H200 processors. The deal would require export licenses and regulatory approvals, which are uncertain given US restrictions on AI chip sales to China. Huang was in China as part of a US delegation, a sign that negotiations over chip access may be ongoing. Some Chinese approvals have already slowed, and the final outcome remains unclear.
