Boom! Nvidia Explodes Shakes Wall Street

<p>&nbsp;Chipmaker Nvidia continues to benefit from the artificial intelligence (AI) boom after reporting stronger earnings in the second quarter ending July 30, 2023.</p><p><br /></p><p>Nvidia's revenue jumped 101% on a year-over-year basis to $13.51 billion in the second fiscal quarter, far beating Refinitiv's expectations for an increase of just $11.22 billion.</p><p><br /></p><p>The strong performance is not expected to stop here after Nvidia also posted a higher revenue forecast for its fiscal third quarter of $16 billion.</p><p><br /></p><p>Not only that, but the company also announced plans to buy back (buyback) $25 billion of its shares, indicating that it is confident in its current operations.</p><p><br /></p><p>**A buyback program can also signal that a company's management believes its stock is undervalued.</p><p><br /></p><p><br /></p><p>The firm's shares soared more than 6.5% in extended trading in New York, adding to their big gains this year.</p><p><br /></p><p>Even before the report was released, Nvidia stock had more than tripled for the year, making it the best performer in the S&amp;P 500.</p><p><br /></p><p>As a result, the Nasdaq and S&amp;P 500 closed 1% higher, while the Dow Jones index rose 0.5%.</p><p><br /></p><p>Nvidia chief executive Jensen Huang said that a new era of computing has begun. Companies around the world are moving from general purpose to fast computing and generative AI.</p><p><br /></p><p>He added that Nvidia is now working to become an enterprise IT system and open software provider to bring NVIDIA AI to every industry.</p>