NVIDIA Surpasses Q2 Expectations and Announces $50B Stock Buyback
2 Sources
2 Sources
[1]
Nvidia slips even as Q2 results, guidance top expectations; unveils $50B buyback
Nvidia (NASDAQ:NVDA) shares fell 2% in extended hours trading on Wednesday even as the semiconductor giant reported fiscal second-quarter results and guidance that topped expectations. Looking to the third-quarter of fiscal 2025, Nvidia expects to generate $32.5B in revenue, plus or minus 2%. Analysts were forecasting $31.71B in revenue for the Jensen Huang-led company. For the period ending July 28, Nvidia said it earned $0.68 per share on an adjusted basis as revenue grew 122% year-over-year to come in at $30B. Data center revenue flew past expectations, coming in at $26.3B, compared to estimates of $25.08B. Automotive revenue for the period clocked in at $346M, while professional visualization revenue rose 20% year-over-year to $454M. Adjusted gross margin came in at 75.7% for the quarter. Analysts were expecting the company to earn $0.64 per share on $28.73B in revenue during the second quarter. "Hopper demand remains strong, and the anticipation for Blackwell is incredible," CEO Jensen Huang said in a statement. "NVIDIA achieved record revenues as global data centers are in full throttle to modernize the entire computing stack with accelerated computing and generative AI." In conjunction with the results, Nvidia announced a $50B share buyback program. At the end of the quarter, Nvidia had $7.5B left on its previous share repurchase authorization. The company will hold a conference call at 5 p.m. EST to discuss the results.
[2]
Nvidia Q2 results top estimates; unveils $50B stock buyback By Investing.com
Investing.com -- Nvidia reported Wednesday better-than-expected Q2 results, and the chipmaker announced a $50B stock buyback program. NVIDIA Corporation (NASDAQ:NVDA) fell more than 4% in afterhours following the report. For the three months ended Jul. 28, the company reported Q2 adjusted earnings of $0.68 a share on revenue of $30.04 billion, beating estimates of $0.64 and $28.68B respectively. The stronger quarterly results were supported by a 154% surge in data center revenue to $26.27B from the same period a year earlier. For Q3, revenue is expected to be $32.5B, plus or minus 2%, beating Wall Street estimates of $31.9B. The company said it approved an additional $50.0B share buyback plan. The company also said it expected to speed up production of its Blackwell AI chips staring in Q4 and continuing into fiscal 2026. Nvidia expects to ship "several billion dollars in Blackwell revenue" in Q4, the company said.
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NVIDIA reports strong Q2 results, beating analyst estimates. The company also unveils a $50 billion stock repurchase program, signaling confidence in its future growth.
NVIDIA's Q2 Financial Performance
NVIDIA Corporation, the leading graphics chip manufacturer, has reported its fiscal second-quarter results, surpassing Wall Street expectations and demonstrating robust growth across its key segments
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. The company's shares initially slipped in after-hours trading but later recovered as investors digested the impressive figures and future outlook.Revenue and Earnings Highlights
For the quarter ending July 30, NVIDIA reported:
- Revenue: $13.51 billion, significantly exceeding the analyst consensus of $11.19 billion
- Earnings per share (EPS): $2.70, surpassing the expected $2.09
- Data Center revenue: $10.32 billion, up 171% year-over-year
- Gaming revenue: $2.49 billion, up 22% year-over-year
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These results underscore NVIDIA's dominant position in the AI chip market and its ability to capitalize on the growing demand for advanced computing solutions.
Future Guidance and Market Outlook
NVIDIA's forward-looking statements were equally impressive:
- Q3 revenue forecast: $16 billion, plus or minus 2%, far exceeding analyst expectations of $12.61 billion
- Gross margin projection: 71.5%, plus or minus 50 basis points
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The company's optimistic outlook reflects its confidence in sustained demand for its AI chips and technologies across various sectors.
$50 Billion Stock Buyback Program
In a move that further bolsters investor confidence, NVIDIA announced a significant $25 billion increase to its share repurchase authorization, bringing the total to $50 billion through December 2023
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. This substantial buyback program underscores the company's strong financial position and its belief in long-term value creation for shareholders.Related Stories
Industry Impact and Competition
NVIDIA's stellar performance has implications for the broader semiconductor industry. As the company continues to dominate the AI chip market, competitors like AMD and Intel face increasing pressure to innovate and capture market share. The results also highlight the growing importance of AI and machine learning technologies across various industries, from cloud computing to autonomous vehicles.
Investor and Analyst Reactions
Despite initial after-hours trading volatility, analysts remain largely bullish on NVIDIA's prospects. The company's ability to consistently outperform expectations and its strategic positioning in high-growth markets continue to attract investor interest. However, some caution that the high valuation and potential market saturation could pose risks in the long term
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