By Thomas Richmond
Publication Date: 2026-05-28 14:59:00
Quick Read
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Nvidia (NVDA) announced an $80B stock buyback and raised its quarterly dividend from $0.01 to $0.25 per share while reporting Q1 revenue of $81.6B (up 85.2% YoY) and non-GAAP EPS of $1.87, yet the stock fell 4.43% as elevated expectations already priced in exceptional results.
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Hyperscale customers like Google, Meta, and Microsoft are designing their own chips to reduce NVIDIA dependence, while AMD and Intel catch up, but Nvidia’s 75.0% gross margin and $48.6B quarterly free cash flow provide structural advantages competitors cannot replicate without massive recurring capital spending.
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A recent episode of Reuters Morning Bid focused on one of the strangest signals in the AI market right now. NVIDIA (NASDAQ:NVDA) announced an $80 billion stock buyback, raised its dividend sharply, and projected $1 trillion in sales of its most advanced AI chips “just this year and next.“
Despite the good news, the stock barely moved. The Reuters host argued that expectations around NVIDIA may have become so elevated that even extraordinary results are no longer enough to meaningfully surprise investors.
The Flat-Reaction Paradox
Capital returns at this scale usually spark a major re-rating. NVIDIA’s board approved the $80.0 billion repurchase authorization on May 18, 2026, in addition to the $38.5 billion remaining under its prior…