Nvidia (NVDA) surprised investors with a massive shareholder rewards announcement alongside its strong Q1 Fiscal 2027 earnings report, showing just how much cash the AI boom is generating for the company. The company said its board approved an additional $80 billion share repurchase authorization with no expiration date. At the same time, the company raised its quarterly cash dividend from $0.01 per share to $0.25 per share, a 25-fold increase.
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High conviction NVDA bears now have this Tradr ETFThe new dividend will be paid on June 26, 2026, to shareholders of record as of June 4.
The move came after another blockbuster quarter for Nvidia. The company reported Q1 revenue of $81.6 billion, up 85% year-over-year, while data center revenue jumped 92% to a record $75.2 billion as AI demand remained strong.
Why the $80 Billion Buyback Matters
The $80 billion buyback is one of the biggest share repurchase programs in the tech sector and shows Nvidia’s confidence in its future AI-driven cash flow.
During Q1 alone, Nvidia returned about $20 billion to shareholders through buybacks and dividends. Even after that, the company still had $38.5 billion left under its earlier buyback plan before adding another $80 billion.
To put the size of the move into perspective, the new buyback program is larger than the total market value of several S&P 500 (SPX) companies.
Buybacks also help reduce the number of shares outstanding, which can support earnings per share growth over time. More importantly, the move signals that Nvidia believes AI demand and its long-term growth story remain very strong.
Nvidia Is Becoming More Than Just a Growth Stock
For years, Nvidia was mainly seen as a fast-growing AI company focused on expanding its business. But the latest announcement shows the company is now generating enough cash to invest heavily in AI while also returning billions to shareholders.
CEO Jensen Huang said the buildout of AI factories remains the “largest infrastructure expansion in human history,” highlighting continued strong demand for Nvidia’s AI chips.
The combination of strong revenue growth, rising cash flow, a much larger dividend, and a massive buyback program could make Nvidia attractive not only to growth investors but also to long-term investors looking for steady shareholder returns.
Is Nvidia Stock Still a Buy?
Turning to Wall Street, analysts have a Strong Buy consensus rating on Nvidia stock based on 40 Buys, one Hold, and one Sell assigned in the past three months. Furthermore, the average 12-month Nvidia price target of $283.26 per share implies 26.75% upside potential.
