Nvidia Stock: $50 Billion Share Buyback and Quarterly Earnings Overview
Nvidia’s $50 Billion Share Buyback Announcement
Nvidia recently approved a whopping $50 billion share buyback, signaling confidence in its future. As part of its fiscal second-quarter results, the US chipmaker also reported its quarterly earnings, showcasing a net income of $16.6 billion, along with a revenue rise to $30 billion, a remarkable 122% increase year over year.
Quarterly Earnings Overview
Despite these robust figures, Nvidia’s after-hours stock price fell by 6.89%. This reaction suggests that even with exceeding Wall Street estimates, expectations from investors were higher. The company’s earnings per share surged by 68 cents, surpassing last year's figures.
- Nvidia's expected revenue for the third quarter stands at $32.5 billion.
- The recent buyback is one of the largest in the S&P 500.
- Prior share buyback announcements included a $25 billion plan last year.
Market Reactions
Investor sentiments reflect disappointment despite Nvidia’s strong quarterly earnings. Experts indicate that the bar was set high after previous results. “The size of the beat this time was much smaller than we’ve been seeing,” commented an analyst. This might indicate that despite growing demand for AI chips, Nvidia's quarterly outcomes fell short of what some investors anticipated.
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