Analysis-Nvidia's $25 billion buyback 'a head-scratcher' for some shareholders
© Reuters. FILE PHOTO: A smartphone with a displayed NVIDIA logo is placed on a computer motherboard in this illustration taken March 6, 2023. REUTERS/Dado Ruvic/Illustration/File PhotoNEW YORK - Nvidia 's move to buy back $25 billion of its shares after its stock has more than tripled this year caught some investors off-guard, even as they cheered a stellar second-quarter report.
Companies commonly repurchase their stock as a way to return capital to shareholders. Such buybacks can benefit a stock's price by reducing the supply of shares and increasing demand, and can boost earnings per share, a closely watched investor metric. "As a shareholder, we like to see stock buybacks, but for a company like Nvidia that is growing so fast, you kind of want to see their earnings being plowed back in to the company,” Lip added.
However, Plumb said, the company might be limited in how it can deploy its resources after its deal to buy semiconductor designer Arm Holdings Ltd collapsed last year amid regulatory concerns.
Deutschland Neuesten Nachrichten, Deutschland Schlagzeilen
Similar News:Sie können auch ähnliche Nachrichten wie diese lesen, die wir aus anderen Nachrichtenquellen gesammelt haben.
Nvidia forecast tops Wall Street expectations, $25 billion share buyback planned By ReutersNvidia forecast tops Wall Street expectations, $25 billion share buyback planned
Weiterlesen »
Nvidia bets $25 billion that AI boom is far from over By ReutersNvidia bets $25 billion that AI boom is far from over
Weiterlesen »
Nvidia bets $25 bln that AI boom is far from overNvidia's CEO Jensen Huang said he expects the artificial intelligence boom will last well into next year and made what could be the largest single bet yet in the tech sector to back up his optimism.
Weiterlesen »
The Best Stanley Tumbler Alternative Is On Sale for Just $25 at AmazonGet your hands on these insulated drink tumblers on Amazon for nearly half the price of Stanley cups.
Weiterlesen »
City of San Diego gets $25 million from state budget for various projectsThree institutions in Balboa Park will split more than $7 million.
Weiterlesen »