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NVIDIA said on Wednesday that its board of directors had approved $50 billion worth of stock buybacks.
The computer chip giant announces stock buybacks as part of its financial plan Second quarter financial reportwhich reported earnings and guidance that beat Wall Street expectations.
As part of the company’s first half of fiscal 2025, Nvidia returned $15.4 billion to shareholders through stock repurposing and cash dividends.
Last year, Nvidia declare As part of its fiscal second-quarter results, the company will conduct $25 billion in stock repurchases.
Share prices tend to rise after a company announces a stock buyback plan.
Take May as an example, apple Announces $110 billion in share buybacks as part of its budget Second quarter results Data show that overall sales fell by 4% compared with the same period last year, and iPhone sales fell by 10% compared with the same period last year. However, shares of the iPhone maker were up 7% in after-hours trading, likely because Apple stock buyback It is the largest in the history of the company.
Even though Nvidia posted solid financial results and announced a stock buyback, its stock price fell 4% in after-hours trading, and some experts believe believe The company has been performing so well that it’s becoming increasingly difficult to impress investors.
Nvidia said its second-quarter sales increased 122% year-on-year to $30.04 billion, and net profit increased 168% year-on-year to $16.6 billion.
The company said it expected third-quarter sales of about $32.5 billion, above analysts’ expectations of $31.7 billion.
——CNBC’s Kif Leswing contributed reporting.
