Nvidia posts 168% higher second quarter profits on record revenues of over $30 billion

Announces an additional $50 billion in share buybacks but disappoints high expectations with its sales forecast

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The American microchip and graphics card manufacturer Nvidia achieved a net profit of 16.599 billion dollars (14.858 billion euros) in its second fiscal quarter, which ended in July, a figure that represents an increase of 168.2% over the profits of the same quarter of last year, according to the technology company, which has authorized a new share buyback plan of up to 50 billion dollars (44.756 billion euros).

Nvidia’s revenues between May and July reached a record $30.04 billion (26.889 billion euros), 122.4% more than a year earlier, thus beating the company’s own forecasts, while costs increased by 84.6%, to $7.466 billion (6.683 billion euros).

Nvidia’s data center business revenue in the second quarter grew 154% year-on-year and 16% quarter-on-quarter to $26.3 billion, while its gaming and AI business generated revenue of $2.9 billion, up 16% year-on-year and 9% from the first quarter.

In the first six months of its fiscal year, Nvidia posted a net profit of $31.48 billion (€28.178 billion), almost four times more than in the same period of the previous year, when it earned $8.232 billion (€7.369 billion), while revenues totaled $56.084 billion (€50.202 billion), 171% more.

Looking ahead to the third quarter of the year, Nvidia expects its turnover to reach 32.5 billion dollars (29.091 billion euros), with an upward or downward deviation of 2%.

On the other hand, the multinational indicated in the presentation of its accounts that in the first half of the fiscal year it returned 15.4 billion dollars (13.785 billion euros) to shareholders in the form of repurchased shares and cash dividends.

In this regard, he specified that at the end of the second quarter the company had 7.5 billion dollars (6.713 billion euros) to execute share buybacks and, on August 26, the board of directors of Nvidia approved an additional authorization to repurchase shares for 50 billion dollars, “without expiration.”

Nvidia shares, which closed Wednesday’s session down 2.10%, were trading down more than 3% in the after-hours market after the multinational presented its accounts and announced its forecasts for the third quarter of its fiscal year.