Nvidia's revenue more than doubled in the past quarter, continuing its streak of impressive growth and surpassing market expectations. The US chipmaker also authorised another $50 billion share buyback as earnings soared over the past year.
Despite this positive news, Nvidia's shares fell more than 4% in after-hours trading, following a 2% decline during regular trading hours. This occurred even though revenue jumped 122% to a record $30.04 billion for the three months ending July 28, exceeding first-quarter levels by 15%.
Nvidia attributed its strong performance to record Data Centre revenue of $26.3 billion, which was 16% higher than in the first quarter and a staggering 154% increase from the same period a year ago. This segment remains Nvidia's core business.
The decline in share price highlights the potential overoptimism of analysts during periods of rapid growth, even when a company significantly exceeds expectations. Analysts had predicted revenue of approximately $28.7 billion and profits of around $15.1 billion for the quarter. However, Nvidia surpassed these estimates, reporting net income of $16.6 billion, a 168% increase year-over-year and a 12% improvement from the first quarter.
"Demand for Hopper remains strong, and the anticipation for Blackwell is incredible," said Jensen Huang, Nvidia's founder and CEO. He added that the company "achieved record revenues as global data centres accelerate their modernisation of the entire computing stack with accelerated computing and generative AI."
During the first half of fiscal 2025, Nvidia returned $15.4 billion to shareholders through share repurchases and cash dividends. As of the end of the second quarter, the company had $7.5 billion remaining under its current share repurchase authorisation. The newly authorised $50 billion will increase this amount to $57 billion for the remainder of 2024-25.
