Why this could be the next big Nvidia stock catalyst, just like it was for Apple

Nvidia, the AI chip pioneer, has returned a record $26 billion to shareholders in its second fiscal quarter, with $20 billion through share repurchases and $6 billion via a $0.25 per share quarterly dividend. This represents more than 60% of its free cash flow returned to shareholders so far this year, exceeding its goal of 50%.

Executives stated they intend to increase capital returns moving forward, with forecasts of $115 billion in cash returns for 2026 and $230 billion in 2027. Analyst Mark Lipacis noted that Nvidia's financial results, coupled with increased capital returns, could lead to a P/E multiple expansion, reminiscent of Apple's experience in 2015.

Nvidia's shares surged 6% after the earnings report, which outperformed expectations on both earnings per share and revenue. The company's Data Center segment generated $89 billion, surpassing the $85.8 billion forecast. Nvidia projected a first-quarter revenue of $105.8 billion to $110.1 billion, marking the first time the company has hit $100 billion in revenue.

CEO Jensen Huang cited a lack of memory chip shortages as a factor behind the revenue growth, expecting a $1 trillion revenue mark by fiscal year 2028. Analysts remain bullish on Nvidia's prospects, citing robust AI infrastructure demand and higher revenue per GW.