A Decade Of Rewards: $83 Bil From NVIDIA Stock

Core Insights - NVIDIA has returned a total of $83 billion to its investors over the past ten years through dividends and buybacks, ranking 24th in history for shareholder returns [2][3] - The company's capital return strategy reflects management's confidence in its financial viability and ability to generate consistent cash flows [4] Financial Performance - NVIDIA's revenue growth stands at 71.6% for the last twelve months (LTM) and an average of 92.0% over the last three years [11] - The company has a free cash flow margin of 43.6% and an operating margin of 58.1% for LTM [11] - The lowest annual revenue growth recorded in the last three years was 9.9% [11] - NVIDIA's stock is currently trading at a price-to-earnings (P/E) ratio of 52.9 [11] Market Context - Companies with high capital returns, like NVIDIA, may face trade-offs regarding growth opportunities, as seen with firms like Meta and Microsoft, which have returned a smaller portion of their market cap to shareholders while expanding rapidly [5][6] - Historical performance indicates that NVIDIA is not immune to significant market sell-offs, having experienced declines of 85% during the Global Financial Crisis and 68% during the Dot-Com collapse [8]