Nvidia Targets $20B CPU Revenue, Raises Dividend to $0.25
SkimNews Take
Nvidia's optimistic valuation of its new AI GPUs, alongside similar moves by other tech giants in quantum computing, indicates a market where future-looking tech valuations are increasingly driven by anticipated, rather than current, market capture.
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- Nvidia posted Q1 adjusted earnings of $1.87 per share, beating Bloomberg's $1.77 estimate.
- Nvidia forecast Q1 revenue of $81.62 billion, exceeding analysts' $79.18 billion expectation.
- Nvidia announced a new standalone CPU and projected $20 billion in CPU revenue this year, including sales of the CPU with its Grace Blackwell and Vera Rubin systems.
- Vera Rubin and its Grace Blackwell counterpart are expected to generate $1 trillion in revenue from 2025 through 2027.
- Nvidia increased its stock buyback authorization to $80 billion and raised its quarterly dividend to $0.25 per share, targeting a return of half its free cash flow to shareholders.
- Colette Kress highlighted that the dividend rise moves Nvidia from a penny to $0.25 per quarter, delivering $1 per year per share for investors.
Why it matters: Shareholders benefit from a higher dividend and expanded buyback, while the new CPU line and $1 trillion compute outlook broaden Nvidia’s product mix beyond GPUs, giving customers a full stack for agentic AI workloads and potentially reshaping data‑center procurement in the next few years.
