Nvidia has turned its staggering cash generation into the biggest shareholder windfall in corporate history, authorising $80 billion in additional share repurchases alongside a 25-fold dividend increase. The moves come as the AI chip giant juggles a politically sensitive China strategy, a planned $150 billion annual spending ramp in Taiwan, and the imminent launch of a homegrown ARM processor for PCs.
The board’s buyback approval adds to $38.5 billion still available from earlier programmes, giving Nvidia a total firepower of more than $118 billion for returning capital. The decision is underpinned by a record free cash flow of $48.6 billion in the latest quarter — a sum that highlights how deeply the AI boom is flooding the company’s coffers. The quarterly dividend will jump from a token $0.01 to $0.25 per share, payable on 26 June to holders of record on 4 June.
Yet even as Nvidia pushes more cash into investors’ pockets, it is simultaneously planning an enormous expansion of its physical footprint in Taiwan. Chief executive Jensen Huang announced that Nvidia will lift its annual spending in the island to $150 billion, a figure that dwarfs the buyback programme itself. Huang used the Computex Taipei forum to declare that Huawei’s technological advances do not threaten the manufacturing leadership of TSMC, particularly in 3D packaging — a critical area for Nvidia’s advanced chips.
The Taiwan spending pledge has a parallel in Nvidia’s evolving relationship with China. On 28 May, Huang joined the advisory board of Tsinghua University’s School of Economics and Management, a body chaired by Apple’s Tim Cook and including Elon Musk and Satya Nadella. The appointment, which follows Huang’s recent trip to China alongside President Trump, is widely seen as an attempt to keep academic and diplomatic channels open despite strict US export controls that already block Nvidia from booking any data-centre revenue in the country.
While the China door stays mostly shut, the data-centre business continues to drive results. Quarterly revenue reached $81.6 billion, up 85% year on year, with data-centre sales accounting for $75.2 billion of that total. The company guided for roughly $91 billion in the current quarter, a figure that leaves little room for error as Wall Street recalibrates valuations amid rising bond yields.
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The next catalyst arrives on 1 June, when Huang takes the stage at Computex in Taipei. He is expected to flesh out the “Vera Rubin” platform — a new architecture that combines the Rubin GPU with the Vera CPU and NVLink 6 networking. Nvidia claims the platform can train AI models with up to 75% fewer GPUs than Blackwell and cut inference costs per token by as much as 90%. Such efficiency gains could broaden demand for AI compute even as cloud providers look to lower operating expenses.
Another potential announcement is a consumer-grade processor. In a cryptic social-media exchange on 29 May, Nvidia and Microsoft jointly posted coordinates pointing to the Taipei Music Center, accompanied by the slogan “A new era of PC.” Industry sources believe Nvidia will unveil an ARM-based chip internally codenamed N1 or N1X, built on TSMC’s 3-nanometre process and integrating a Blackwell graphics module with up to 6,144 CUDA cores. The chip would go head-to-head with Apple’s M5 Pro and Qualcomm’s Snapdragon X2 Elite in the Windows segment.
On the trading floor, the stock’s response to the news flow has been muted. Nvidia shares closed at €181.40 in Frankfurt on Friday, down 1.39% on the day. The year-to-date gain stands at 12.6% in euro terms, while over the past twelve months the stock has surged nearly 49%. Technical support sits around $200, with near-term resistance at $215, according to chartists.
Against that backdrop, a small insider sale has drawn attention. Director John Dabiri sold 625 shares at $214 each on 27 May, for a total of roughly $133,750, under a trading plan established last December. He retains 14,163 shares directly. The transaction is negligible relative to Nvidia’s $5.38 trillion market capitalisation, but it underscores the tension between the company’s relentless financial momentum and the shifting geopolitical and technological landscape it now navigates.
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