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NVIDIA announced on Wednesday that its board had approved a $50 billion share buyback.
The computer chip giant announced the share buyback as part of its fiscal second-quarter earnings release, in which it reported earnings and forecasts that beat Wall Street expectations.
Nvidia returned $15.4 billion to shareholders in the form of stock repurchases and cash dividends during the first half of fiscal 2025. The company said it had $7.5 billion remaining under its share repurchase plan at the end of the second fiscal quarter.
Last year, Nvidia announced a $25 billion share buyback as part of its second-quarter results.
Companies often experience a boom in their share price after announcing share buyback plans.
In May, for example Apple announced a $110 billion share buyback as part of its second-quarter results. Total sales fell 4% year-over-year and iPhone sales fell 10% year-over-year. However, the iPhone maker’s shares rose 7% in after-hours trading, likely because Apple’s share buyback was the largest in company history.
As Nvidia shares fell 4% in extended trading despite the company reporting solid financial results and announcing a share buyback, believe the company is doing so well that it is becoming increasingly difficult to impress investors.
According to Nvidia, second-quarter revenue rose 122% year-over-year to $30.04 billion, while net income rose 168% year-over-year to $16.6 billion.
The company forecasts third-quarter revenue of about $32.5 billion, beating analysts’ estimates of $31.7 billion.
— CNBC’s Kif Leswing contributed reporting.
