Nvidia Hits New All-Time High

Shares of Nvidia rose 6.7% to hit a new all-time high on Thursday, after the company unveiled a $25 billion buyback plan, coupled with record quarterly revenue powered by strong demand for its artificial intelligence (AI)-focused chips. From a report: Nvidia generated revenue of $13.51 billion in the second quarter and predicted that revenue would reach $16 billion in the third quarter, the company reported late on Wednesday. Both results exceeded analyst expectations, as per Refinitiv. Santa-Clara, California-based Nvidia also said it would buyback $25 billion worth of its shares. Nvidia's stock rose as high as $502.66, surpassing a record high hit earlier this week, and further entrenching itself as the first trillion-dollar chip maker. It pared some of those gains and was last up 1.8% at $479.82. The stock is now up 227% year-to-date.

Corporate malfesance

[sinij]

Doing buyback at the top of stock valuation and ahead of anticipated market correction/recession and in times when likely fab disruptions pose existential crisis to NVIDIA is nothing short of malfeasance.

Re:

[timeOday]

short the stock

Re:

[organgtool]

I've never shorted a stock and I've never been more tempted. The only thing stopping me is the adage: "the market can remain irrational far longer than you can remain solvent". Luckily, the small dopamine hit that comes from "I saw this coming a mile away" is free.

Re: Corporate malfesance

[lostmy4digitUID]

You can buy puts that expire a year away. The problem with doing that is that nvda is actually delivering. They doubled thier revenue this quarter. That's bananas.

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[Xenx]

While I'm not certain I agree with it being malfeasance, not enough info and there could be internal reasons why this is a good move, I fail to see how this explanation is supposed to explain why it isn't.

Re:Corporate malfesance

[Amouth]

that's not how stock buy backs work at all - due to the risk of abuse as you suggest - the SEC requires buy backs to be announced and date/schedules set - and they be "market" orders from a matching settlement standpoint. Best they could do to rig it is set price limits, which is actually risk midigation for the company and all stock holders.

for the company to buy out a specific person or group - would require public transparency / board vote / and likely a general stock vote.

I'd be easer for them to just keep getting away with their current get rich quick schemes and keep awarding themselves massive stock bonuses at significantly reduced option pricing..

Re:

[Zekolas]

There is no anticipated market correction , if everyone anticipated a market correction well it would have already happened.

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[organgtool]

Someone is living in a bubble.

Fun fact

[rsilvergun]

Stock BuyBacks contribute heavily to inflation. They were illegal until Reagan

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[organgtool]

Not to mention a P/E ratio of 245!

Nvidia's second bubble.

[xack]

If you rewind the chart a bit, they had a previous bubble burst when all the crypto miners got stung by Ethereum going proof of stake. Now they are betting the farm on AI instead of actual GRAPHICS processing units. We could have had 8K graphics on x080 class hardware and 16K on x090 by now, but they lost their way with greed, with traditional GPU users (workstations and gaming) getting sidelined.

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[rsilvergun]

I don't think this one's going to burst. AI or let's face it LLMs have thousands of applications that directly replace jobs being done by expensive squishy humans. And they run best off of video cards.

It's possible Nvidia will get its lunch eaten by custom Asics but that'll take a while and even if it does those Ascics are very expensive and have little resale value.

As a gamer much as I'd like to see that bubble Burst I don't think it's going to. I think $500 entry level video cards of the new Norm.

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[WaffleMonster]

I don't think this one's going to burst. AI or let's face it LLMs have thousands of applications that directly replace jobs being done by expensive squishy humans. And they run best off of video cards.

Everyone is adding transformer optimized matrix instructions to their processors. NVIDIA's position will soon be eroded substantially as others marry optimized instructions with high bandwidth memory.

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[SquisherX]

What you're suggesting, is that if they didn't invest into AI, their current chips would have 16 times the performance of their current offerings - effectively a 7 year stagnation. This is ridiculous.

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[iggymanz]

Lost their way? They make money not your chips.

Seems you're making gamer whining, you're not where they're going to be making their big coin.

Apple?

[ThurstonMoore]

"further entrenching itself as the first trillion-dollar chip maker"

Wasn't that Apple?

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[saider]

Apple's software has only ever had one function - to sell Apple Hardware.

If they were a "software company" their software would run on white box PCs, Windows, Android, etc.

Re: Apple?

[lostmy4digitUID]

https://www.cnbc.com/video/202... [cnbc.com] What world do you love in?

So they can only go down from now on?

[thesjaakspoiler]

Because AMD is releasing their next gen AI chip soon?

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[iggymanz]

AMD has't had anything comparable to NVIDIA in specialized high performance, they're more for the beer budget crowd thus far. Nothing wrong with making money there, but competing with NVIDIA would be very different thing for them.

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[iggymanz]

But the point is could AMD ever become such a threat as to make NVIDIA stock go down? Doesn't look like that could happen for years.

Shit!

[RitchCraft]

Looks like I'm holding onto my GTX960 for a while longer. Does anyone remember when nVidia was a graphics card company?

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[muh_freeze_peach]

Does anyone remember when nVidia was a graphics card company?

They still are. Just because they aren't selling them to YOU doesn't mean they aren't selling them. Why would I sell you a $600 GPU at a very tight margin when I can rebadge and sell it to enterprise for 2x?

Pass the savings...

[TheSlashdotHunter]

Seriously Nvidia, drop your card prices. These prices are insanely high for no good reason. Pandemic is over. Corporate greed is going strong.

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[muh_freeze_peach]

They haven't cared about consumer hardware for a long time and why would they stop making truckloads of money to appease some sweaty gamers?