Nvidia Board Approves $60 Billion Share Buyback Following Strong Q2 Performance

Nvidia (NASDAQ: NVDA) announced on August 27, 2025, that its Board of Directors has authorized an additional $60.0 billion in share repurchases, a significant move following the company's robust second-quarter fiscal 2025 financial results. The announcement came as the chip giant reported record quarterly revenue of $30.0 billion, a 122% increase year-over-year.

Despite the overall strong financial performance, including surpassing broader revenue and earnings per share estimates, Nvidia's shares experienced a slight dip of 2-3% in after-hours trading. This reaction was largely attributed to a marginal miss on Wall Street's high expectations for data center revenue, which came in at $26.3 billion against some analyst projections.

The substantial share repurchase authorization, which has no expiration, underscores Nvidia's strong cash flow and commitment to returning capital to shareholders. This follows the company having already returned $15.4 billion to shareholders in the first half of fiscal 2025 through buybacks and dividends.

A key point of discussion during the earnings call revolved around the uncertainty surrounding sales to the crucial Chinese market. Nvidia did not factor H20 chip sales to China into its third-quarter outlook due to ongoing geopolitical considerations and pending formal regulations on a proposed 15% revenue remittance to the U.S. government.

CEO Jensen Huang acknowledged the challenges but emphasized the immense opportunity in China, stating that the market could represent a $50 billion opportunity if the company were able to address it with competitive products. He also affirmed that production of Nvidia's latest AI superchip, Blackwell, is "ramping at full speed, and demand is extraordinary."

The company projects revenue for the third quarter of fiscal 2025 to be approximately $32.5 billion, plus or minus 2%. The market's nuanced reaction highlights the exceptionally high expectations placed on Nvidia as a leader in the booming artificial intelligence sector, even as it continues to deliver record-breaking growth.