Nvidia share price declines 7% in extended trade after Q2 results, $50 billion buyback

Nvidia reported its second quarter earnings mostly ahead of estimates, but the chipmaker’s guidance for the next quarter failed to impress Wall Street investors. The company announced Q2 results after the bell.

Nvidia share price ended 2.1% lower at $125.61 apiece at the closing bell. However, Nvidia stock price declined 6.89% in the after-hours trading. Its total market value as of the close Wednesday was at $3.156 trillion as against around $1.15 trillion one year ago.

Nvidia stock price has jumped 154% so far in 2024 and is up some 3,000% since 2019.

Nvidia’s Q2 revenue more than doubled from the same period a year earlier. Its revenue in the quarter ended July 31 rose 122% from a year ago to $30.04 billion, beating estimates of $28.70 billion. Its revenue from data center business grew 154% YoY to $26.3 billion and accounted for 88% of its overall sales.

Nvidia forecast revenue of $32.5 billion, plus or minus 2%, for the third quarter, compared with analysts' average estimate of $31.77 billion.

The company’s earnings per share, excluding certain items, was at $0.68, marginally higher than the estimates of $0.64.

The chipmaker reported a gross margin of 75.7% in Q2 as against 78.4% in the previous quarter and versus an average estimate of 75.8%. It expects an adjusted gross margin of 75%, plus or minus 50 basis points, in Q3.

The company said it was shipping Blackwell samples to its partners and customers after tweaking its design, and that it expected several billion dollars in revenue from these chips in the fourth quarter, Reuters reported.

Nvidia also announced a $50 billion share buyback.

(With inputs from Reuters)