Nvidia adds $1B to buyback plan, shares now +2.8% AH


Along with its FQ3 results, Nvidia (NVDA) has announced it's adding another $1B to its buyback authorization; the chipmaker now has $1.286B available for buybacks. Nvidia bought back $750M worth of shares earlier this year through a deal with Goldman.

After rising 7.5% Y/Y in FQ2, Nvidia's GPU division sales fell 2% in FQ3 to $876.8M, as strong Quadro (workstation) and Tesla (server/HPC) GPU sales failed to fully offset PC weakness. Nvidia says GPU sales for PC "gaming platforms" (a high-margin business) remains healthy, but that entry-level notebook GPU shipments fell.

Tegra division sales totaled $111.2M, up 111% Q/Q thanks to the Tegra 4 ramp and Shield console sales, but down 54% due to tough direct competition from Qualcomm, and tough indirect competition from Apple/Samsung's in-house app processors.

Gross margin was 55.7%, -60 bps Q/Q and +260 bps Y/Y. GM is expected to slip to 54.5% in FQ4. In spite of a 12.5% Y/Y rev. drop, opex rose 17.6% Y/Y, due largely to a 20% increase in R&D spend to $340.3M (32% of revenue).

FQ3 results, PR, CFO comments (.pdf)

From other sites
Comments (0)
Be the first to comment
DJIA (DIA) S&P 500 (SPY)
ETF Hub
ETF Screener: Search and filter by asset class, strategy, theme, performance, yield, and much more
ETF Performance: View ETF performance across key asset classes and investing themes
ETF Investing Guide: Learn how to build and manage a well-diversified, low cost ETF portfolio
ETF Selector: An explanation of how to select and use ETFs