Chipmaker Nvidia continues to benefit from the artificial intelligence (AI) boom after reporting stronger earnings in the second quarter ending July 30, 2023.
Nvidia's revenue jumped 101% on a year-over-year basis to $13.51 billion in the second fiscal quarter, far beating Refinitiv's expectations for an increase of just $11.22 billion.
The strong performance is not expected to stop here after Nvidia also posted a higher revenue forecast for its fiscal third quarter of $16 billion.
Not only that, but the company also announced plans to buy back (buyback) $25 billion of its shares, indicating that it is confident in its current operations.
**A buyback program can also signal that a company's management believes its stock is undervalued.
The firm's shares soared more than 6.5% in extended trading in New York, adding to their big gains this year.
Even before the report was released, Nvidia stock had more than tripled for the year, making it the best performer in the S&P 500.
As a result, the Nasdaq and S&P 500 closed 1% higher, while the Dow Jones index rose 0.5%.
Nvidia chief executive Jensen Huang said that a new era of computing has begun. Companies around the world are moving from general purpose to fast computing and generative AI.
He added that Nvidia is now working to become an enterprise IT system and open software provider to bring NVIDIA AI to every industry.
