Nvidia’s share price dropped 7% in after-hours trading following their Q2 results and the announcement of a $50 billion buyback.

Nvidia’s share price closed 2.1% lower at $125.61 per share. However, it fell an additional 6.89% in after-hours trading. As of Wednesday’s close, Nvidia’s market value was $3.156 trillion, up from approximately $1.15 trillion a year ago.

Nvidia reported second-quarter earnings that mostly exceeded expectations, but its guidance for the next quarter disappointed Wall Street. The company released its Q2 results after the bell.

Nvidia’s share price ended the regular session 2.1% lower at $125.61 per share and dropped an additional 6.89% in after-hours trading. As of Wednesday’s close, its total market value stood at $3.156 trillion, compared to approximately $1.15 trillion a year ago.

Nvidia stock price has jumped 154% so far in 2024 and is up some 3,000% since 2019.

Nvidia’s Q2 revenue more than doubled compared to the same period last year, rising 122% to $30.04 billion, surpassing the $28.70 billion estimate. Revenue from its data center business soared 154% year-over-year to $26.3 billion, making up 88% of total sales.

For the third quarter, Nvidia projected revenue of $32.5 billion, plus or minus 2%, which is above analysts’ average forecast of $31.77 billion.

The company’s earnings per share, excluding certain items, came in at $0.68, slightly exceeding the estimated $0.64.

Nvidia reported a gross margin of 75.7% for Q2, down from 78.4% in the previous quarter and slightly below the average estimate of 75.8%. The company anticipates an adjusted gross margin of 75%, plus or minus 50 basis points, for Q3.

Nvidia mentioned that it is sending Blackwell samples to partners and customers following design adjustments and expects these chips to generate several billion dollars in revenue in the fourth quarter, according to Reuters.

Additionally, Nvidia announced a $50 billion share buyback program.