Nvidia Crushes Q2 Earnings Expectations with $50B Stock Buyback Program
In a stunning move, Nvidia (NASDAQ: NVDA) reported exceptional Q2 results, surpassing analysts' expectations and announcing a massive $50 billion stock buyback program. As a result, the stock initially fell more than 4% in afterhours trading.
For the quarter ending Jul. 28, Nvidia reported adjusted earnings of $0.68 per share on revenue of $30.04 billion, exceeding estimates of $0.64 per share and $28.68 billion in revenue. The company also projected Q3 revenue to reach $32.5 billion, which is higher than Wall Street's forecast of $31.9 billion.
Moreover, Nvidia revealed plans to accelerate the production of its Blackwell AI chips starting in Q4 and extending through fiscal 2026. The company anticipates generating "several billion dollars in Blackwell revenue" in Q4.
Analysis:
Nvidia's impressive performance in Q2, along with the announcement of a substantial stock buyback program, signifies the company's confidence in its future growth prospects. The acceleration of Blackwell AI chip production further highlights Nvidia's commitment to innovation and technology advancement. Investors should take note of Nvidia's bullish outlook and consider the potential impact on their investment portfolios.