.August 29, 2024 04:06:00 PM

NVIDIA (NASDAQ:NVDA) impressed investors with its Q2 earnings report, beating expectations and announcing a $50 billion stock buyback program. Despite this, shares dropped over 6% on Thursday.

In Q2, Nvidia reported adjusted earnings of $0.68 per share, exceeding analysts’ forecasts of $0.64. Revenue also surpassed expectations at $30.04 billion, compared to the estimated $28.68 billion.

A key driver of Nvidia’s strong performance was a 154% year-over-year increase in data center revenue, reaching $26.27 billion.

For Q3, Nvidia expects revenue of $32.5 billion, surpassing Wall Street’s projection of $31.9 billion.

Nvidia’s board approved an additional $50 billion for stock repurchases and plans to accelerate Blackwell AI chip production, generating billions in revenue starting in Q4.

The company maintained its non-GAAP gross margin guidance at 75.0% and projects mid-70% margins for the full fiscal year, with a slight decrease expected in Q4.