Nvidia details US$50b buyback and revenue jumps 122%, but shares slump
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The news: Nvidia's reported a revenue of USD30 billion ($44 billion) for the three months ending July 28. It's a number that beat analysts' high expectations of USD28.8 billion, and which represents a 122% rise from the same quarter last year.
The company also announced its board earlier this week approved a USD50 billion stock buyback. "Samples" of Blackwell, Nvidia's next-generation processor, have begun shipping to select customers, according to CEO Jensen Huang.
The numbers: Most of the company's money was made via the chips it sells to data centres, with that division generating revenue of USD26.3 billion.
Nvidia's net income for the quarter was USD16.6 billion. The company forecasted the next quarter's revenue to grow to USD32.5 billion.
Despite being expectations, Nvidia's stock has dipped around 5% in after-hours trading.
The context: Nvidia has thus far been the chief beneficiary of the AI boom, its stock having grown 2900% over the past 5 years. That extraordinary run has led to extraordinary expectations, with global markets closely observing the company as a potential bellweather for the AI bull run in general.
Huang statement in the results that "samples" of Blackwell chips are being sent to key customers is likely to ease fears about a reported delay, which some thought might have slowed Nvidia's incredible momentum. Blackwell is a successor to Hopper, or the H100, which catapulted Nvidia to a new stratosphere after launching in late 2022.
What they said: “Hopper demand remains strong, and the anticipation for Blackwell is incredible,” Huang said. “Nvidia achieved record revenues as global data centres are in full throttle to modernise the entire computing stack with accelerated computing and generative AI.”
What they said: “Judged from the initial market reaction in extended trading hours, the loftiest expectations were clearly not met," said Saxo's head of equity strategy, Peter Garnry.
“Nvidia’s results and outlook confirm there will likely be another AI investment wave as the big technology companies will invest heavily in the new Blackwell chips... Another takeaway is that the competition is not even close to taking market share from Nvidia, and thus the investment case still looks solid.”
The source: Nvidia
