CHIP DESIGNER Nvidia will buy back $1bn worth of shares over the course of its financial year in a bid to return money to investors.
In a bid to please investors, Nvidia $100m of the buy-back will be during its current quarter.
Nvidia has being paying out a dividend to investors, though it is hardly something to shout about. The firm said part of its total $1.2bn return to shareholders will include a $0.075 per share dividend, which amounts to $50m a quarter.
"Nvidia's strategies are gaining traction in the market and make us confident in our ability to continue generating cash. We are now broadening our program of giving back cash to our shareholders and plan to return a further $1bn by the end of this fiscal year," he said.
Nvidia has been reaping the rewards of its Tesla and Tegra businesses, with revenues increasing and very healthy gross margins that sit comfortably above 50 percent.
Nvidia CEO Jen-Hsun Huang revealed at the GPU Technology Conference last month that the firm will invest heavily in developing its Tegra system on chip (SoC), telling analysts it represents the company's largest revenue generation potential.
However, like many semiconductor firms, Nvidia's share price has stagnated recently. It pays a relatively poor dividend, especially in comparison with rivals like Intel. The firm's decision to return $1.2bn to investors is a move to keep its share price steady and give investors a reason to have more confidence in the company.
Nvidia said it will provide further details of its share buyback program when it releases first quarter fiscal 2014 financial results. µ
We didn’t see that one coming
Sargent Bash is about to know his enemy
And now they are being traded in Russia
So it's not really come to Android at all as such