Nvidia Unleashes Record $80B Buyback and Dividend Hike as Physical AI Drive Begins
11.06.2026 - 21:54:58 | boerse-global.de
The chipmaker that rode the artificial intelligence wave to a market-defying valuation is now handing cash back to shareholders at an unprecedented pace while simultaneously charting a course into the physical world. Nvidia’s board last week approved a quarterly dividend increase from one cent to 25 cents per share — an annualised $1 — and authorised a fresh $80 billion share repurchase programme. Management committed to returning at least half of free cash flow to owners, a pledge backed by a balance sheet that holds roughly $80 billion in cash against negligible debt. In the preceding quarter alone, Nvidia bought back some $20 billion of its own stock.
The generosity comes atop results that, by any normal standard, would be extraordinary. Revenue for the first quarter of fiscal 2027 surged 85 percent to a record $81.6 billion, while net profit more than tripled, climbing 211 percent. The data centre segment, the company’s beating heart, contributed over $75 billion of that total. A growing slice is flowing from what Nvidia calls “Sovereign AI” — government-backed projects in Germany, Japan and India that are building independent AI infrastructure to reduce reliance on international cloud providers.
Yet not all regions are thriving. Strict US export controls have hammered the China business, where revenue nearly halved to $4.55 billion. For the current quarter, chief executive Jensen Huang has guided for around $91 billion in revenue, a figure that already excludes Chinese data centre spending entirely. The company sees no let-up in demand for AI infrastructure, expecting elevated levels to persist through at least 2028.
Should investors sell immediately? Or is it worth buying Nvidia?
That long runway is critical because Nvidia is now asking investors to believe in a second act. The stock has already climbed roughly 41 percent over the past twelve months, and the recent pullback — about 6 percent in the past week — has left shares trading near €175–€176, roughly 13 percent below the all-time high set in May. Technically, the price action is indecisive rather than panicked: the 50-day moving average sits just above at €176.76, the 200-day average is 9 percent lower, and the relative strength index of 44.3 signals neither overbought nor oversold conditions.
The market’s hesitation reflects a strategic pivot that is still unproven. Nvidia is pushing beyond data centre chips into “physical AI” — embedding its software and hardware into vehicles, robots and factory floors. The recent unveiling of the Alpamayo 2 Super model, aimed at developers of autonomous vehicles, underscores the ambition to become the operating system for machines that perceive and act in the real world. Reports of a deepened alliance with Hyundai fit the same narrative: Nvidia is no longer content to sell components; it wants to sell a whole ecosystem.
Huang himself has acknowledged the tension. He describes supply as sufficient to support strong growth while simultaneously warning that the company remains supply-constrained. That paradox has kept the stock rangebound, with volatility exceeding 41 percent. Analysts remain broadly bullish, issuing an average price target of $305.67, but they are demanding proof that the robotaxi and robotics opportunity can justify a valuation built on data centre earnings.
For now, the $80 billion buyback and the beefed-up dividend serve as a powerful signal of management’s confidence. Nvidia is telling shareholders it can afford to return capital aggressively while spending heavily on the next frontier. Whether the physical AI bet pays off will determine whether the current correction is a pause — or the beginning of a reassessment.
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Nvidia Stock: New Analysis - 11 June
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