Nvidia share price hit record high led by AI boost, $25 billion share buyback plan

After hitting a record high during the session, Nvidia share price ended marginally higher at $471.63 apiece. The stock surged as high as $502.66 intraday, with Nvidia shares having jumped 223% year-to-date. The increase in Nvidia stock comes after the company announced a $25 billion share buyback plan and reported upbeat second quarter results led by strong demand for its AI-focused chips. 

Nvidia’s second quarter revenue of $13.51 billion has gone beyond analyst expectations. In the third quarter, the company has predicted its revenue would reach $16 billion. Nvidia’s revenue guidance also crushed analysts expectations by a decent margin. 

Nvidia’s data center revenue surged to $10.3 billion in the second quarter as against Wall Street analysts’ estimates of $8 billion.  

The company’s business in size has doubled as compared to the same quarter last year, owing to the booming demand for Nvidia’s artificial-intelligence chips from tech giants building generative AI services. 

Nvidia happens to be the first chip maker valued at more than $1 trillion. It said it would buy back $25 billion worth of its shares, one of the largest planned buybacks of the past decade. 

More than 20 brokerages raised their target price on Nvidia after the earnings. Among the most bullish were Elazar Advisors with a target of $1,600 and Rosenblatt Securities with a target of $1,100, according to Refinitiv data.