Nvidia Just Raised Its Dividend by 2,400%. Is the AI Growth Stock a No-Brainer Buy Before the End of May?
View original at nasdaq.comNvidia Just Raised Its Dividend by 2,400%. Is the AI Growth Stock a No-Brainer Buy Before the End of May? Key Points Management is confident that sustained cash-flow growth can support a higher dividend payout…
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Nvidia's dividend increase makes it even more of a screaming buy.
60% confidenceNvidia's biggest risk is that it drastically overestimates AI agent and physical AI demand, and that AI inferencing doesn't lead to recurring, high-margin revenue.
60% confidenceNvidia's inferencing business could create a recurring revenue stream and make it less dependent on one-time chip sales, potentially mirroring Apple's ecosystem model.
60% confidenceAs a key enabler of AI, Nvidia will make investments necessary to deliver the industry's lowest cost per token and the highest token throughput, which will help customers and partners scale and expand the AI frontier.
60% confidenceMotley Fool Stock Advisor's total average return is 986%, compared to 208% for the S&P 500.
60% confidenceNvidia's current results are still heavily driven by the cyclical boom in AI spending as hyperscalers upgrade infrastructure built for general IT needs to meet AI demands.
60% confidenceNvidia stock trades at just 33.7 times earnings, which is dirt cheap for a company growing as quickly and as profitably as Nvidia.
60% confidenceNvidia expects $20 billion in revenue in 2026 from its new Vera Rubin central processing units alone.
60% confidenceA $1,000 investment in Nvidia at the time of the Motley Fool Stock Advisor recommendation on April 15, 2005 would be worth $1,320,088 as of May 24, 2026.
60% confidenceNvidia is defying the laws of business physics by maintaining a breakneck top- and bottom-line growth rate despite its behemoth size.
60% confidenceNvidia management is confident that sustained cash-flow growth can support a higher dividend payout.
60% confidenceNvidia plans to return at least 50% of free cash flow to shareholders through dividends, especially in the second half of the year as the company works through some investments.
60% confidenceIn March, the author correctly predicted that Nvidia would make a substantial dividend increase in 2026 based on CFO comments at GTC 2026.
60% confidenceA $1,000 investment in Netflix at the time of the Motley Fool Stock Advisor recommendation on December 17, 2004 would be worth $477,813 as of May 24, 2026.
60% confidenceSkepticism about Nvidia's sustainability is arguably already baked into Nvidia's valuation at 33.7x earnings.
60% confidence
Data points we hold from this source
| NVIDIA Corporation · eps | 33.7 price_to_earnings_ratio |
| NVIDIA Corporation · annual dividend payout projected | 24.3 USD |
| NVIDIA Corporation · share repurchase authorization | 80 USD |
| NVIDIA Corporation · quarterly dividend per share new | 0.25 USD |