In the midst of the generative AI boom, Nvidia (NVDA) has cemented its position as the dominant force in accelerated computing. Yet as investors debate whether its explosive growth can continue, a different narrative is emerging: Nvidia is moving closer to Apple’s model of aggressive capital returns, and dividends could become a new catalyst for the stock.
Nvidia’s latest fiscal second-quarter results for 2027 once again blew past expectations. Revenue came in at $96.2 billion, up 106% year over year, while adjusted earnings per share reached $2.22, beating analyst estimates of $2.09. Data center revenue surged 117% to $89 billion, underscoring persistent demand for AI infrastructure. The company also issued guidance for the next quarter in the range of $105.8 billion to $110.1 billion. If the top end is reached, quarterly revenue would top $100 billion for the first time.
Beyond the headline numbers, the sharp increase in shareholder returns drew particular attention. Nvidia returned a record $26 billion to shareholders during the quarter, including roughly $20 billion in stock repurchases and $6 billion in dividend payments. Earlier this year, the company raised its quarterly dividend from $0.01 per share to $0.25 per share, a 2,400% increase. That move lifted total dividend payouts from $244 million in the prior quarter to $6.05 billion.
The shift invites comparisons to Apple, long known for massive buybacks and steady dividend growth. In its most recent quarter, Apple repurchased $25.95 billion of stock and paid $4 billion in dividends. Over the past decade, Apple reduced its share count by 31.6% through repurchases, helping to drive earnings per share higher even as profit growth slowed. Nvidia’s leadership appears to recognize the value of that playbook.
Chief Financial Officer Colette Kress said on the earnings call that the company intends to return at least 50% of free cash flow to shareholders, and that the year-to-date figure has already reached 60%. She added that Nvidia plans to increase and return excess free cash flow after strategic uses. In other words, after funding research and capital expenditures, the company still holds significant cash and is willing to hand more of it back to shareholders through dividends and buybacks.
Nvidia’s confidence is backed by surging free cash flow. The company expects revenue to grow 70% in fiscal 2028, even against difficult comparisons. The new Vera Rubin platform began shipping in August and is expected to account for 20% of data center revenue next quarter, marking the fastest ramp in company history. The rack-scale design integrates multiple chips and networking infrastructure, allowing Nvidia to extract more value from each data center deployment.
When a company can simultaneously deliver high growth and large-scale cash returns, the market often rewards it with a higher valuation. Apple currently trades at about 36.2 times forward earnings, while Nvidia trades at roughly 23.4 times. If Nvidia continues to raise its dividend and expand buybacks, investors may begin to view it less as a volatile semiconductor cyclical and more as a stable cash generator.
Nvidia’s next quarterly dividend of $0.25 per share is scheduled for payment on October 1, with a record date of September 10. Many in the market expect another substantial dividend increase within the next 12 months. If that happens, dividends and buybacks could become a meaningful support for the stock rather than a side note to the AI story.
Whether Nvidia truly becomes “the next Apple” remains to be seen. But from the trajectory of its capital returns, the company is already walking a similar path.
