Nvidia authorizes $80 billion buyback

Nvidia paired another record quarter with a much larger capital-return plan. The company said on May 20 that its board had approved an additional $80 billion share repurchase authorization, without expiration, as it reported fiscal first-quarter revenue of $81.6 billion and net income of $58.3 billion. The buyback came alongside a dividend increase, giving investors two clear cash-return signals even as the stock slipped in after-hours trading following the results. Nvidia’s update also prompted fresh analyst revisions, including a higher price target from JPMorgan’s Harlan Sur. ### How big was the new buyback, exactly? Nvidia said the board approved the additional $80.0 billion authorization on May 18, and disclosed it with earnings on May 20. The company also said it had $38.5 billion remaining under its prior repurchase authorization at the end of the quarter, meaning the total capacity available after the new approval was far larger than the headline figure alone. (nvidianews.nvidia.com) The authorization has no expiration date, according to Nvidia’s earnings release and SEC filing. That means the board gave management flexibility on timing rather than setting a deadline for purchases. ### What did Nvidia report in the quarter that preceded the move? Nvidia reported first-quarter fiscal 2027 revenue of $81.6 billion for the period ended April 26, 2026, up 85% from a year earlier and 20% from the prior quarter. (nvidianews.nvidia.com) The company said data center revenue reached $75.2 billion, up 92% from a year earlier. Net income was $58.3 billion, according to the company’s earnings materials. Nvidia said the quarter reflected continued demand for its artificial-intelligence chips. ### Why did the stock fall if the numbers beat expectations? CNBC reported that Nvidia’s shares fell after the earnings release even though the company beat Wall Street expectations. (nvidianews.nvidia.com) The move extended a pattern in which investors reacted cautiously after strong quarterly reports, while analysts and market commentators focused on whether results were high enough to clear already elevated expectations. JPMorgan’s Harlan Sur was among the analysts who revised his view after the report. A summary of the note said Sur raised his price target to $280 from $265 and kept an Overweight rating. ### Was the buyback the only shareholder-return change? Nvidia also raised its quarterly cash dividend to $0.25 per share from $0.01 per share. (cnbc.com) The company said the dividend will be paid on June 26, 2026, to shareholders of record on June 4, 2026. The dividend increase was announced in the same earnings release as the buyback authorization. (msn.com) Nvidia presented both moves as part of its capital-allocation update for the quarter. ### What should investors watch next? June 4 is the next dated milestone in Nvidia’s announcement because it is the record date for the higher dividend. (nvidianews.nvidia.com) June 26 is the payment date, and future repurchase activity will show up in Nvidia’s subsequent quarterly filings and earnings disclosures.