Nvidia share price hit record high on robust Q2 results led by AI ...

The rally in Nvidia stock comes after the company announced a $25 billion share buyback plan and reported upbeat second quarter results led by strong demand for its artificial intelligence (AI)-focused chips.

Nvidia’s second quarter revenue of $13.51 billion beat analyst expectations. The company also predicted its revenue would reach $16 billion in the third quarter. Nvidia’s revenue guidance also crushed analysts expectations by a decent margin.

Read here: AI boost: Nvidia beats expectations with Q2 results and bullish Q3 guidance, announces $25 billion share buyback

The booming demand for Nvidia’s artificial-intelligence chips from tech giants building generative AI services has doubled the company’s business in size as compared to the same quarter last year. 

Nvidia’s data center revenue surged to $10.3 billion in the second quarter as against Wall Street analysts’ estimates of $8 billion. 

Nvidia, the first chip maker valued at more than $1 trillion, said it would buy back $25 billion worth of its shares, one of the largest planned buybacks of the past decade.

Also Read: Nvidia share price hits all time-high, short sellers lose $826 million

More than 20 brokerages raised their target price on Nvidia after the earnings. Among the most bullish were Elazar Advisors with a target of $1,600 and Rosenblatt Securities with a target of $1,100, according to Refinitiv data, Reuters reported.

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Updated: 25 Aug 2023, 10:07 AM IST