Nvidia board of directors approve $50 billion stock buyback

The board of directors of Nvidia has approved a $50 billion stock buyback. The computer chip giant announced the share repurchase as part of its fiscal second-quarter earnings. Nvidia returned $15.4 billion to shareholders in share repurposes and cash dividends as part of the company’s first half of its fiscal 2025.

Last year, Nvidia announced a $25 billion share buyback as part of its fiscal second-quarter results.

Companies frequently see a surge in their stock price after announcing stock buyback plans.

For example, in May, Apple revealed a $110 billion stock buyback alongside its fiscal second-quarter results, which showed a 4% decline in overall sales and a 10% drop in iPhone sales year over year. Nevertheless, Apple's stock rose 7% in after-hours trading, likely due to the fact that this buyback was the largest in corporate history.

In contrast, Nvidia's shares fell 4% in extended trading despite strong financial results and a stock buyback announcement. Some experts suggest that Nvidia's outstanding performance has made it increasingly difficult to exceed investor expectations.

Nvidia reported a 122% year-over-year increase in second-quarter sales, reaching $30.04 billion, and a 168% rise in net income, totaling $16.6 billion. The company also forecasted third-quarter sales of approximately $32.5 billion, surpassing analysts’ expectations of $31.7 billion.