Nvidia's Week of Extremes: A 2,400% Dividend Raise, $150 Billion Taiwan Pledge, and a Stock That Won't Bounce

Jensen Huang just delivered the most eye-popping quarterly numbers in Nvidia's history — record revenue, surging cash flow, and a dividend increase that defies belief. Yet Wall Street barely blinked. The stock closed at $211.14 on May 29, down $3.11 on the day, and slipped roughly 1.7% for the week. In Frankfurt, shares ended Friday at €181.40, almost 10% below their 52-week high.

The disconnect between Nvidia's financial firepower and its share price tells only part of the story. Behind the scenes, Huang has been juggling delicate diplomacy in Beijing, a multibillion-dollar bet on Taiwan, and a potential leap into the PC processor market — all while announcing a massive capital return program that would make most companies blush.

A Dividend That Defies Gravity

Nvidia's board declared a quarterly dividend of $0.25 per share, up from a mere $0.01. That 2,400% jump translates into a full-year payout of $1.00 per share. The stock goes ex-dividend on June 4, 2026, with payment on June 26. The cash to support it is hardly an issue: free cash flow hit $48.6 billion in the quarter, up from $34.9 billion in the prior period and $26.1 billion a year ago. Combined, dividends and buybacks returned a record $20 billion to shareholders, and the board approved an additional $80 billion in repurchase authorization.

Revenue Keeps Smashing Records

For the first quarter of fiscal 2027, Nvidia reported revenue of $81.6 billion, up 85% year over year. The data center segment alone contributed $75.2 billion, a 92% jump. Adjusted earnings per share of $1.87 topped the consensus estimate of roughly $1.76 to $1.77. It was the fourth consecutive quarter Nvidia beat Wall Street's expectations.

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The outlook for the current quarter is equally strong. Nvidia guided for revenue of $91 billion, plus or minus 2%, and an adjusted gross margin of 75%. Analysts had been forecasting $86.84 billion, meaning the midpoint of guidance is nearly $5 billion higher than expected. Notably, the forecast excludes any data center revenue from China — a sign of how deeply export restrictions have altered the company's planning.

Vera Rubin: The Next Leap

Even as Nvidia ramps production of the Blackwell architecture, the company has already previewed its successor: the Vera Rubin platform. Combining the new Vera processor with Rubin GPUs, Nvidia claims it cuts inference token costs by a factor of ten and reduces the number of GPUs needed to train mixture-of-experts models by 75% — both versus Blackwell. CEO Jensen Huang warned of supply constraints for the entire lifespan of Vera Rubin, which is slated to ship in the second half of 2026.

A Week of Diplomacy and Deals

Huang's calendar last week read like a trade summit itinerary. On May 28, he joined the advisory board of Tsinghua University's School of Economics and Management, a body chaired by Apple's Tim Cook and also including Elon Musk and Microsoft's Satya Nadella. The move comes amid tight US export controls on Nvidia's most advanced AI chips and is seen by analysts as an effort to keep academic and diplomatic channels open with Beijing. Huang recently accompanied President Trump on a trip to China.

The next day, Nvidia and Microsoft teased a cryptic message on social media with coordinates pointing to the Taipei Music Center and the slogan "A new era of PC." Industry sources believe Nvidia is preparing to launch an ARM-based processor, internally called N1 or N1X, built on TSMC's 3-nanometer process and pairing a Blackwell GPU with up to 6,144 CUDA cores. The target: go head-to-head with Apple's M5 Pro and Qualcomm's Snapdragon X2 Elite in the Windows PC market. An official announcement is expected during Huang's Computex Taipei keynote on June 1.

Betting $150 Billion on Taiwan

At Computex, Huang also revealed plans to boost Nvidia's annual spending in Taiwan to $150 billion, a staggering commitment to the island's semiconductor ecosystem. He dismissed concerns that Huawei's technological advances could challenge TSMC's edge in 3D packaging, asserting that the foundry's lead remains intact.

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Insider Sale Adds a Note of Caution

Director John Dabiri sold 625 shares on May 27 at $214 each, netting roughly $133,750. The transaction was executed under a pre-arranged trading plan from December 2025, and Dabiri retains 14,163 Nvidia shares directly. Technically, the stock finds its next support near $200, with short-term resistance around $215. The shares remain about 13% above their 200-day moving average, suggesting the longer-term uptrend is intact.

China: The Missing Ingredient

Nvidia's decision to exclude Chinese data center revenue from its guidance underscores the volatility of that market. US export rules make shipments of high-end AI chips structurally uncertain, so management treats any potential China sales as upside rather than a planning assumption. Analysts have nonetheless raised their full-year 2027 estimates: revenue is now expected to reach $391.3 billion, with earnings per share of $9.34.

With Vera Rubin set to hit the market in the second half of 2026 and a possible easing of export restrictions, Nvidia has plenty of catalysts on the horizon. But for now, even a record-breaking quarter and a dividend explosion have failed to reignite the rally.

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