Nvidia continues AI-driven surge, announces $25B stock buyback

Nvidia exceeded analysts’ expectations with its latest earnings announcement, riding the artificial intelligence (AI) boom on its advanced chips and announcing a $25 billion stock buyback.

Santa Clara, California-based Nvidia has emerged as a powerhouse in the AI space in large part due to its advanced computer chips, which are used in most generative AI apps and the training of large language models that power them. Nvidia’s earnings results from the second quarter of the company’s fiscal year showed that its momentum is continuing to build.

"A new computing era has begun," said Jensen Huang, Nvidia’s CEO. "The industry is simultaneously going through two platform transitions: accelerated computing and generative AI. Data centers are making a platform shift from general purpose to accelerated computing. The trillion dollars of global data centers will transition to accelerated computing to achieve an order of magnitude better performance, energy efficiency and cost."