Nvidia: Q2 earnings exceed Wall Street expectations

Nvidia has announced a significant $50 billion stock buyback. This decision was made by the company’s board of directors and was announced alongside the company’s fiscal second-quarter earnings, which exceeded Wall Street expectations.

Nvidia has already returned $15.4 billion to shareholders through share repurchases and cash dividends during the first half of its fiscal 2025. However, the company still has $7.5 billion remaining under its current share repurchase plan. This announcement follows a previous $25 billion share buyback announced last year.

Stock buybacks often lead to a surge in a company’s stock price. Apple, for example, saw a 7% increase in its share price after announcing a $110 billion stock buyback in May. Despite reporting strong financial results and announcing this new buyback, Nvidia’s shares fell by 4% in after-hours trading, suggesting that investors may be expecting even more from the company.

Nvidia’s second-quarter sales increased by 122% year over year to $30.04 billion, while net income jumped by 168% year over year to $16.6 billion. The company has projected third-quarter sales of approximately $32.5 billion, surpassing analyst estimates of $31.7 billion.