Does Nvidia operate a capital intensive business? Is there something they could realistically do with $60B incremental?
Share it with their employees for a job well done? lulz
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Idk, seems like all the shit they sell is always backlogged, so they could maybe build a new factory or two.
I don’t think Nvidia knows anything about manufacturing but I guess they could look into that.
They use TSM for manufacturing. And 50B for a 3T company is pretty much peanuts
50B is like 9 months of earnings for them, it is a completely insane thing to do
How the fuck did NVDA stonk go down despite exceeding projections? I feel cheated.
Things were much better when I just never looked. Need to go back to that.
Well they exceeded the formal written analyst expectations, but obviously the market expected that and expected they exceeded by more. Anyway with a stock priced for growth, the price movement usually has more to do with what they say about the business conditions going forward than how was their performance in the quarter being reported on.
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By announcing a share buyback it means growth will slow since they can’t allocate capital efficiently.
At least it means their growth is dependent on riding the wave of AI LLMs processing and Crypto mining and they can’t use money to influence that demand. It also means they can’t or don’t feel the need to invest that money in a way that secures their current competitive advantage in that space and consequently their margins. I don’t know their industry well enough to know whether there’s a credible threat to their position but to me it would be worrisome. Any time that type of money is there to be made there will be competitive threats. I am not going to read the 10k or 10q of a company I have no investment in or intention to invest in, but there’s probably some language explaining their management’s thoughts on this.
It’s actually completely normal. Apple has been doing ~$100B annual buybacks for many years.
This is part of an argument I have made ITT that a share buyback tax is compelling in making internal reinvestment more competitive on the margin than buyback/dividends.
It’s actually possible that NVIDIA right now has the highest compensation expense for any company in history.
In what way are you defining “compensation expense” to make this statement true? Walmart spends like ~40x more on employee payroll than nvidia. Amazon ~12x more.
I haven’t looked at the data, so I might be way off. Just lots of anecdotal reports of 7-8 figure RSU payouts for everyone who’s worked there for more than a year.
I could see nvidia having the highest per employee compensation for companies with a minimum number of employees.
Very much not stonks today.
It’s my own fault for looking at least once a day.
I really should stop doing that, but I can’t help it.
NVDA couldn’ve gotten a 10% discount on their buybacks if they were patient!
Ouch, rough day. My portfolio sits around a “milestone” number that I keep crossing back and forth over with the swings of the last couple of months. Psychologically that has a weird way of making the downswings feel more painful that if it were just some random +/-.
Oh cool just Nvidia dropping like 6 Hondas in a day, very normal efficient market stuff here