Nvidia Posts Another Blowout Quarter, Announces $25B Share Buyback

An exterior view of the NVIDIA headquarters.

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Nvidia (NVDA) shares jumped after it delivered another blowout earnings report, easily beating analysts' expectations and announcing a new share buyback program. The chipmaker's success is being pushed by surging demand for GPU chips, data center resources, and the rise of generative artificial intelligence.

Key Takeaways

  • Nvidia posted record revenue of $13.5 billion, up 101% year-on-year, in part due to surging demand in GPU chips, data center resources, and A.I.-related technology.
  • Data center revenue also hit a record at $10.32 billion, up 171% on last year.
  • The company announced a $25 billion share buyback program.

The Santa Clara, Calif.-based chip company said its second-quarter revenue came in at a record $13.51 billion, up 101% year-on-year. Wall Street had high hopes for this year's stock darling but had earnings expectations pegged at $12.5 billion. There was another record for its data center, which posted revenue of $10.32 billion, an astonishing 171% rise over the same period last year.

Net income of $6.18 billion, or $2.48 per share, marked an increase of more than 800% from last year. Nvidia returned $3.38 billion to shareholders via its stock buyback program during the quarter but announced $25 billion in additional repurchases.

The earnings were the first since Nvidia shocked Wall Street analysts with a 50% upward revision on its previous guidance in the first quarter. That catapulted the company to a $1 trillion market valuation alongside tech heavyweights like Apple. The company has seen surging demand for its GPU chips and data center cloud resources as companies scramble to build their own artificial intelligence products. Management has forecasted revenue of $16 billion, plus or minus 2%, for its third quarter.

“A new computing era has begun. Companies worldwide are transitioning from general-purpose to accelerated computing and generative A.I.,” said Jensen Huang, CEO of Nvidia.

Shares of Nvidia surged 5.6% in extended trading after the earnings release and were up 8.29% in premarket trading. Shares are up more than 200% year-to-date.

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  1. Nvidia. "NVIDIA Announces Financial Results for Second Quarter."

  2. Reuters. "Nvidia earnings will be major test for AI demand, market rally"

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