Nvidia Targets Healthcare AI and Chinese Server CPUs as Dividend Soars

Nvidia partners with Abridge on clinical AI, opens orders for Vera CPU in China, and boosts buybacks by $80B amid record $81.6B quarterly revenue.

Nvidia is quietly building out a second revenue engine beyond its powerhouse data-center business. The chip giant has teamed up with health-tech startup Abridge to develop a clinical AI model based on its open-source Nemotron architecture, designed to analyse and document doctor-patient conversations. Nvidia’s venture arm, NVentures, is among the backers of Abridge, which has raised roughly $830 million to date. The move builds on the company’s Clara healthcare platform and signals a deliberate push to embed its software stack deep into an entirely new vertical — one where pure hardware rivals struggle to follow.

Simultaneously, Nvidia is attempting a carefully calibrated return to the Chinese market, which CEO Jensen Huang has described as having fallen to zero market share after US export bans on high-performance chips. Instead of trying to sell restricted AI accelerators like the H200, the company is opening order books for the Vera processor, a server CPU that sidesteps export controls by handling baseline tasks such as database queries. Chinese customers can order the chip from August onward. Yet winning back favour will not be automatic: local cloud giants Alibaba, Tencent and Baidu are accelerating their own AI-chip development, seeking independence from Western technology. Accordingly, Nvidia’s second-quarter revenue guidance of $91 billion excludes any contribution from Chinese data-centre sales, meaning every Vera chip sold would be pure upside.

The financial firepower underpinning these strategic bets is considerable. In its fiscal first quarter, Nvidia posted a record $81.6 billion in revenue, with the data-centre segment alone contributing $75.2 billion. The company returned roughly $20 billion to shareholders during the period, and on June 26 it will raise its quarterly dividend to $0.25 per share — a 2,400% increase. In addition, the board has authorised another $80 billion in share buybacks, bringing the total repurchase capacity to nearly $120 billion. Shareholders will vote on the plan at the virtual annual meeting on June 24.

The stock closed Friday at €177.28, roughly 12% below its 52-week high of €202.50. Year-to-date, shares have gained about 10%, a relatively modest performance compared with other semiconductor names. Technical indicators point to a neutral stance: the relative strength index sits at 45.6, and the share price is virtually on its 50-day moving average. Analysts remain bullish, with the consensus of 59 analysts pegging the fair value at roughly $299 per share.

The coming days will provide two clear catalysts. The annual meeting and dividend payment will reinforce Nvidia’s capital-return narrative, while the Vera processor’s order launch will test whether its China strategy can gain any traction. Together with the healthcare AI partnership, these moves illustrate a company that is no longer content to dominate only the data centre — it is now actively shaping new markets from the clinic to the server room.