Nvidia Bolsters AI Push with $80 Billion Buyback After Q1 Beat
NVDA•Nvidia reported first-quarter earnings that surpassed both its own guidance and Wall Street forecasts and authorized an additional $80 billion stock buyback to capitalize on sustained AI infrastructure demand. The company’s forward P/E ratio stands at 25x, with management citing rising inference workloads and agentic AI applications as catalysts for further GPU and CPU adoption.
1. Q1 Earnings Beat
Nvidia reported first-quarter earnings that surpassed its own guidance and Wall Street expectations, driven by robust performance in its data center and gaming segments.
2. $80 Billion Buyback Authorization
The board approved an additional $80 billion stock buyback authorization, reflecting management’s confidence in sustained cash flow generation from AI-driven product demand.
3. AI Demand and Valuation Catalysts
Management highlighted rising inference workload requirements and emerging agentic AI use cases, alongside planned CPU architectures, as key catalysts for future GPU and CPU adoption under a forward P/E of 25x.
4. Jensen Huang’s Comments on AI Use
CEO Jensen Huang detailed Nvidia’s contributions to U.S. military operations and dismissed blaming AI for job cuts as 'lazy', underscoring the technology’s broader strategic importance.
