Nvidia raises guidance and launches massive $80bn dollar share buyback program
Nvidia posted revenue forecasts that exceeded Wall Street expectations, while announcing an $80bn share repurchase program, confirming the persistent strength of global demand related to artificial intelligence. The group projects Q2 revenue of $91bn, plus or minus 2%, compared to the $86.84bn expected by analysts according to LSEG. Despite these solid prospects, the stock fell slightly in after-hours trading.
The American manufacturer is still considered the primary provider of infrastructure for artificial intelligence, with its processors powering the majority of the world's major data centers. Nvidia also sharply raised its quarterly dividend, increased from 1 cent to 25 cents per share. Investments in AI infrastructure continue to accelerate at robustly, with spending expected to exceed $700bn this year at Alphabet, Amazon and Microsoft, up from about $400bn in 2025.
However, the group is having to face growing competition. Major cloud players are now developing their own specialized chips, particularly for the "inference" market - the phase where AI systems respond to user queries. This segment is considered potentially larger than that of model training. Nvidia is also confronted by AMD and Intel, which also want to capitalize on this growth. To maintain its lead, the group is multiplying technological initiatives, notably with new processors and partnerships in chips dedicated to inference.
NVIDIA Corporation is the world leader in the design, development, and marketing of programmable graphics processors. The group also develops associated software. Net sales break down by family of products as follows:
- computing and networking solutions (89%): data center platforms and infrastructure, Ethernet interconnect solutions, high-performance computing solutions, platforms and solutions for autonomous and intelligent vehicles, solutions for enterprise artificial intelligence infrastructure, crypto-currency mining processors, embedded computer boards for robotics, teaching, learning and artificial intelligence development, etc.;
- graphics processors (11%): for PCs, game consoles, video game streaming platforms, workstations, etc. (GeForce, NVIDIA RTX, Quadro brands, etc.). The group also offers laptops, desktops, gaming computers, computer peripherals (monitors, mice, joysticks, remote controls, etc.), software for visual and virtual computing, platforms for automotive infotainment systems and cloud collaboration platforms.
Net sales break down by industry between data storage (88.3%), gaming (8.7%), professional visualization (1.4%), automotive (1.3%) and other (0.3%).
Net sales are distributed geographically as follows: the United States (46.9%), Singapore (18.2%), Taiwan (15.8%), China and Hong Kong (13.1%) and other (6%).
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