Nvidia announces $50 billion stock buyback - CNBC

Title: Nvidia Announces Massive $50 Billion Stock Buyback

In an exciting move for investors, Nvidia has recently announced that its board of directors has approved a whopping $50 billion stock buyback. This major decision was revealed as part of the company's fiscal second-quarter earnings, which exceeded Wall Street expectations in both earnings and guidance. In the first half of its fiscal 2025, Nvidia returned $15.4 billion to shareholders through share repurchases and cash dividends.

Nvidia, a prominent computer chip company, reported an impressive rise in second-quarter sales, which increased by 122% year over year, totaling $30.04 billion. Moreover, net income jumped 168% year over year to $16.6 billion. The company's third-quarter sales projections are estimated at roughly $32.5 billion, surpassing analysts' estimates of $31.7 billion.

Despite the strong financial results and announcement of a stock buyback, Nvidia's shares dropped by 4% in extended trading. Some experts believe that the company has been performing so well that it is becoming increasingly difficult to impress investors. However, this move by Nvidia demonstrates its confidence in the future growth potential of the company and the strength of its financial position.

This stock buyback decision follows a similar announcement made by Apple earlier this year when they revealed a $110 billion stock buyback as part of their fiscal second-quarter results, which showed overall sales fell 4% year over year and iPhone sales dropped 10% year over year. Despite these declines, Apple's shares rose 7% in after-hours trading.

With Nvidia continuing to strengthen its financial performance and announcing a significant stock buyback, the company is positioning itself for future growth and investor confidence. This move is expected to bolster the company's share price and solidify its standing as a major player in the computer chip industry.