Nvidia Stock Paid Out $80 Billion

Core Insights - NVIDIA has returned $83 billion to investors through dividends and buybacks over the past decade, with expectations for increased payouts as it leads in the AI silicon market, generating over $75 billion in operating cash flows in the last 12 months [1][3] - NVIDIA stock ranks as the 25th largest total return to shareholders in history, indicating strong management confidence in financial stability and sustainable cash flows [3][5] - The aggregate capital returned to shareholders as a percentage of market capitalization appears inversely proportional to growth potential, with companies like Meta and Microsoft showing faster growth but returning less capital [5][6] Financial Performance - NVIDIA has demonstrated significant revenue growth of 71.6% over the last twelve months and 92.0% over the last three-year average [10] - The company has a free cash flow margin of nearly 43.6% and an operating margin of 58.1% for the last twelve months [10] - The lowest annual revenue growth for NVIDIA in the past three years was 9.9% [10] Valuation Metrics - NVIDIA stock is currently trading at a P/E ratio of 50.7, indicating a higher valuation compared to the S&P [10] - The company offers greater revenue growth and improved margins relative to the S&P [10] Historical Performance and Risks - NVIDIA has experienced significant declines in the past, including a 68% drop during the Dot-Com bubble and an 85% drop during the Global Financial Crisis [7] - The stock also faced declines of 66% during inflation surges and 56% and 38% during corrections in 2018 and the COVID pandemic, respectively [7][8]