Nvidia’s board of directors approved a $50 billion share buyback on Wednesday when it announced its second-quarter results. The US chipmaker easily beat Wall Street estimates, reporting net income of $16.6 billion and a 122 percent increase in revenue to $30 billion.

Despite an impressive quarterly result, the company’s stock fell 2% during the quarter. Nvidia’s after-hours share price fell as much as 6.89%, indicating investor disappointment with the company’s results.

The company’s earnings per share before interest and taxes in the second quarter were 68 percent, up from 27 cents a year earlier. Nvidia expects revenue growth to $32.5 billion in the third quarter, up 2 percent.

Nvidia share buyback

The computer chip giant announced a $50 billion share buyback on Wednesday. The share buyback represents a significant increase from last year, when the company announced a $25 billion share buyback as part of its fiscal second quarter results.

Nvidia’s share buyback plan is likely to please income-seeking investors, as it is one of the largest share buybacks in the S&P 500. Apple previously bought back around $110 billion worth of shares as part of its second-quarter results announced in May. The iPhone maker’s share buyback plan is the largest in the company’s history. Alphabet previously announced a share buyback plan worth $63 billion.

Nvidia’s quarterly results do not meet investors’ high expectations

Despite better-than-expected results and increasing demand for AI chips in the market, Nvidia’s quarterly results failed to impress investors who had hoped for more from the company’s earnings. Investor sentiment was reflected in Nvidia’s share price, which closed 2% lower after the company’s results were announced. In addition, Nvidia’s share price fell another 6.89% after the market closed.

Experts believe that the decline in share price is due to investor disappointment and increased expectations of the company, as it had previously exceeded market expectations with significantly higher margins.

“Expectations were exceeded more than we’ve seen before. Even forward guidance was raised, but again not to the same extent as in previous quarters. This is a great company, with revenue still growing 122%, but it seems the bar has just been set a bit too high this earnings season,” Ryan Detrick, chief market strategist at the Carson Group, told Reuters.