Nvidia Should Borrow a Page from Apple's Playbook to Reward Investors

For years, Nvidia has been the undisputed heavyweight champion of the semiconductor world. Its GPUs power the AI revolution, and its earnings beats have become routine. But here’s the problem: even a blowout quarter recently sent the stock backward. When a company of this scale delivers a surprise and still loses ground, it signals that the market expects more than just product wins.

Apple faced a similar moment years ago. Under CFO Luca Maestri, the company realized that raw cash on the balance sheet could be a powerful tool for shareholders. Apple didn’t just rely on iPhone sales; it paired organic growth with aggressive buybacks and rising dividends. That combination turned a $500 billion company into a $4.5 trillion behemoth. Warren Buffett didn’t buy Apple for the gadgets alone—he bought it because the company made him a bigger owner over time through share repurchases.

Nvidia needs that same discipline. Jensen Huang’s team already offers a sizable buyback and a decent dividend, but neither matches Apple’s scale. The float sits at 24.2 billion shares. Nvidia should signal a plan to shrink that float systematically—perhaps by redeploying gains from strategic investments, like its $5 billion stake in Intel, into buybacks. The goal isn’t explosive growth; it’s consistency. A committed capital return program would stabilize the shareholder base and reduce the volatility that options traders exploit.

Without this shift, Nvidia risks becoming a punching bag for short-term traders. The products are the ante. Buybacks and dividends are the sustenance. It’s time for the company to admit it’s a solid grower and do more for the people who own it.