Chipmaker Nvidia (NVDA) has increased its dividend by 2,400% as its latest quarterly profit soared 211% year-over-year.
The maker of microchips that run artificial intelligence (A.I.) workloads announced that it is increasing its quarterly dividend to $0.25 U.S. per share from $0.01 U.S. previously.
Additionally, Nvidia announced a new $80 billion U.S. stock buyback program as it focuses on returning value to shareholders.
The dividend increase and share repurchase program were announced along with Nvidia’s financial results for this year’s first quarter.
The company posted a profit of $58.3 billion U.S., up 211% from a year earlier. Three years ago, Nvidia’s quarterly profit was $2 billion U.S.
On a per share basis, Nvidia’s profit translated to $1.87 U.S., which surpassed Wall Street’s consensus estimate of $1.76 U.S.
Revenue in the year’s first three months totaled $81.62 billion U.S., which was ahead of the $78.86 billion U.S. expected among analysts. Sales were up 85% from a year earlier.
Management highlighted that revenue in Nvidia’s A.I. data centre unit doubled from a year ago to $75.2 billion U.S., accounting for 92% of total sales in the quarter.
That beat the average analyst estimate of $73.13 billion U.S. in data centre revenue for the company, which is the world’s leading microchip and semiconductor concern.
Looking ahead, Nvidia’s executive team provided strong guidance for the current quarter, saying that global demand for its A.I. processors remains extremely strong.
Nvidia is forecasting $91 billion U.S. in sales for the current quarter, ahead of Wall Street’s average quarterly revenue estimate of $86.84 billion U.S.
The guidance does not include any revenue from China as the U.S. government continues to restrict Nvidia’s microchip sales to the Asian superpower.
Speaking on the company’s earnings call, Nvidia Chief Executive Officer (CEO) Jensen Huang said that agentic artificial intelligence has arrived, and that the A.I. buildout is “accelerating at extraordinary speed.”
NVDA stock has risen 70% in the last 12 months to trade at $223.47 U.S. per share.
