Nvidia Doles Out $6 Billion and Prepares Vera Rubin, Yet the Stock Sits 16% Below Its Peak

Despite a 2,400% dividend hike and $81.6B quarterly revenue, Nvidia stock slides 8% as AI investors shift to memory makers and GPU rental prices cool.

A curious moment has arrived for Nvidia. The company just handed its shareholders a $6.055 billion quarterly dividend — a 2,400% increase from the symbolic penny it paid before — and its data-center revenue has never been higher. Yet the stock continues to slide. On Friday, the U.S.-listed shares fell 1.6% to $195.74, extending a monthly loss of roughly 8%. The Frankfurt-listed equivalent stands at €169.20, down 7% over the past 30 days and a full 16% below the record high of €202.50 touched in mid-May.

The disconnect between Nvidia’s financial firepower and its market performance is stark. In the first quarter of fiscal 2027, the chip giant booked $81.6 billion in revenue, an eye-popping sum driven by its data-center segment, which alone contributed $75.2 billion. Yet the stock’s price-to-earnings ratio has compressed to around 30, the lowest level since 2019 and well below the seven-year average. The company’s profit engine is roaring, but the share price has simply not kept pace.

The rotation within the AI sector helps explain the pullback. Investors are increasingly shifting capital away from Nvidia and toward the suppliers that benefit from bottlenecks in the ecosystem. Memory makers Micron and Sandisk, for instance, are riding tight supplies of high-bandwidth memory (HBM3e), a critical component inside Nvidia’s own data-center systems. GPU rental prices have also slipped since the May highs, cooling the speculative edge of the AI trade. The retreat is not a rejection of AI itself; it is a recalibration of which parts of the value chain will capture the next wave of growth.

Nvidia’s own product roadmap offers a counterweight to the short-term caution. Production of the Vera Rubin platform, the next-generation architecture designed for trillion-parameter models and autonomous AI workflows, is on schedule. Suppliers in Taipei confirm that the transition from the current Blackwell design will wrap up in the second quarter of 2026, with volume ramp beginning in the third quarter. Vera Rubin is expected to deliver up to ten times more inference throughput per watt than its predecessor. CEO Jensen Huang has pegged the total addressable market for the Vera CPU alone at $200 billion, targeting the emerging world of autonomous software agents.

The structural demand for Nvidia’s hardware goes well beyond traditional cloud providers. The rise of “Neocloud” players — non-tech companies building and leasing GPU capacity — is creating a new layer of demand. SpaceX, for example, has reportedly invested billions in Nvidia hardware and is renting that capacity to major AI players like Anthropic and Google Cloud under a contract worth roughly $82 billion over three years. This phenomenon turns Nvidia’s chips into sovereign digital assets rather than mere components, complicating the narrative of an AI bubble and pointing to long-term, committed capital.

Technically, the stock is searching for a floor. The relative strength index sits at 38.6, approaching oversold territory. The price has slipped below the 50-day moving average of €181.12 but remains about 3% above the 200-day average of €163.65 — a line that bullish traders view as the last line of defense. A decisive break below $188 (the U.S.-listed equivalent) would signal deeper trouble. Analysts, however, maintain an average price target of €263.30, betting that the valuation gap between Nvidia’s earnings power and its stock price will eventually close.

Against this sobering technical picture, Nvidia’s board has notched up its capital-return commitment. On June 26, the company paid out its first major quarterly dividend of $0.25 per share, totaling $6.055 billion. That followed an annual general meeting on June 24, where management confirmed a new $80 billion share buyback program. Going forward, Nvidia intends to return at least 50% of its free cash flow to shareholders through dividends and repurchases, aligning itself with the payout policies of other tech titans. The irony is unmistakable: the company is showering investors with cash while its stock languishes — a disconnect that, history suggests, rarely lasts long.