Nvidia just reminded everyone why it sits at the center of the AI universe. The chipmaker reported an 85% year-over-year revenue increase in its latest quarter, comfortably blowing past Wall Street’s forecasts and topping it off with an $80 billion share buyback program. The company also raised its cash dividend. Nvidia shares climbed in the aftermath as investors digested the results.
The numbers behind the AI machine
The 85% revenue jump was driven overwhelmingly by the data-center segment’s demand for AI accelerators. Nvidia’s GPUs have become the de facto standard for training and running large language models, and every major cloud provider, enterprise, and sovereign AI initiative is lining up to buy them.
The company guided next-quarter revenue to roughly $89 billion to $93 billion. Wall Street had been expecting around $87 billion.
The $80 billion buyback authorization is a statement in its own right. When a company commits that kind of capital to repurchasing its own shares, it’s telling the market two things: we believe the stock is a good investment, and we have more cash than we know what to do with.
