Nvidia Forecasts $91B Q3 Revenue, Unveils $80B Buyback and Dividend Hike
Nvidia reported revenue of $81.6 billion for the quarter ended April 26, up 85% year-over-year, and delivered $1.87 in adjusted EPS, topping consensus. It forecast $91 billion in sales for the July quarter, raised its dividend to $0.25 per share and unveiled an $80 billion buyback, yet shares fell 1%.
1. Quarterly Performance
Nvidia generated $81.6 billion in revenue for the quarter ended April 26, an 85% year-over-year increase, with adjusted EPS of $1.87, surpassing analyst estimates of $79.2 billion and $1.77, respectively. Strong performance was driven by its core GPU offerings for AI workloads.
2. Guidance and Capital Returns
For the July quarter, the company guided revenue of approximately $91 billion, above the $87 billion consensus, and announced a dividend increase to $0.25 per share alongside an $80 billion share repurchase program. Despite these measures, shares declined about 1% on investor concerns over elevated expectations.
3. Segment Growth and Strategy
Data center sales reached $75.2 billion, topping the $73.5 billion estimate, while networking revenue was $14.8 billion versus $12.7 billion forecast. Nvidia also established a new ACIE group to target AI cloud, industrial, and enterprise customers, signaling diversification beyond hyperscale computing.
4. Competitive and Regulatory Challenges
Competition is intensifying as AMD, Broadcom, and cloud providers develop in-house AI chips, and U.S. export restrictions continue to limit data center sales in China. Nvidia is expanding into CPUs with an expected $20 billion in revenue this year, aiming to broaden its semiconductor portfolio.