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Nvidia Reports Record Quarter and $80 Billion Buyback

Management’s large share repurchase with a dividend hike has pushed the stock to multi-year low multiples and makes upcoming hyperscaler earnings the likely test of AI spending's breadth

Overview

  • Nvidia posted a lopsided beat this quarter with EPS of $1.87 and revenue of $81.61 billion, a year-over-year increase of about 85%.
  • The company’s board approved an $80 billion share buyback and raised the quarterly dividend to $0.25 per share to return capital to shareholders.
  • After the results, the stock pulled back and its trailing price-to-earnings ratio compressed to roughly 31, the cheapest level seen since 2019.
  • Traders are watching Microsoft and Amazon earnings as near-term catalysts because those reports will reveal whether hyperscalers keep expanding AI data-center spending.
  • Analysts remain broadly bullish on growth but warn of short-term profit taking and competitive risk as hyperscalers build custom chips and rivals pursue partnerships that could shift supplier demand.