Nvidia Shares Fall Despite Results Beat Guides By Investing.com

Investing.com — Nvidia reported better-than-expected second-quarter results on Wednesday, and the chipmaker announced a $50 billion share buyback program.

NVIDIA Corporation (NASDAQ: ) fell more than 5% after hours after the report.

For the three months ended July 28, the company reported adjusted Q2 earnings of $0.68 per share on revenue of $30.04 billion, beating estimates of $0.64 and $28.68 billion, respectively.

The stronger quarterly results were supported by a 154% year-over-year increase in data center revenue to $26.27 billion.

For Q3, revenue is expected to be $32.5 billion, plus or minus 2%, beating Wall Street estimates of $31.9 billion.

The company said it has approved an additional $50.0 billion share repurchase plan.

The company also said it expects to ramp up production of its Blackwell AI chips starting in the fourth quarter and continuing through fiscal 2026.

Nvidia expects to deliver “several billion dollars in Blackwell revenue” in Q4, the company said.

Citi analysts said the results and guidance were better than expected due to “robust strength in AI demand”.

Senad Karaahmetovic contributed to this report