Nvidia shares have achieved a record high for the first time since May, with the stock hitting a new all-time intraday high of about $237.83 on October 2, overtaking the previous May record. As reported by CNBC, the immediate catalyst came from Morgan Stanley, which restored Nvidia as the firm's top semiconductor pick after meetings with CEO Jensen Huang and CFO Colette Kress. The stock has gained about 27% so far this year, putting it on track for its fourth consecutive year of double-digit returns. The rally has been buoyed by optimism that AI agents like Meta Platforms Inc.'s Muse could drive increased semiconductor demand, with the company's market capitalization now standing at roughly $5.7 trillion, leaving it less than $300 billion away from becoming the first company in history to hit the $6 trillion level. According to Forbes, CEO Jensen Huang's net worth has surged to an estimated $203.2 billion, making him the seventh-richest person globally. Huang, who co-founded Nvidia in 1993, owns about 4% of the company and his fortune has risen by $3.4 billion during the session as shares climbed above $237.
Nvidia has announced that its Board of Directors has approved an additional $150 billion under the company's existing share repurchase program, bringing the total authorized remaining amount to $235 billion. According to reports from The Financial Express, Moneycontrol, The Economic Times, Live Mint, CNBC, and The Times of India, this represents the largest buyback program increase in U.S. history, surpassing Apple's $110 billion boost in 2024. CEO Jensen Huang emphasized that "Our growth is being driven by a once-in-a-generation platform shift to AI and accelerated computing." The substantial authorization reflects Nvidia's massive balance sheet strength and confidence in its long-term growth prospects, with the company ending the July quarter with $22.44 billion in cash and cash equivalents. The company expects to execute the total remaining program through fiscal 2028, with CEO Jensen Huang stating that "Our cash generation gives us the capacity to invest in the technologies that advance this transformation and return capital to shareholders."
Nvidia's rebound comes after months of quickly shifting sentiment around the AI landscape, including questions over the hundreds of billions of dollars being spent by firms on AI infrastructure. According to Reuters, the Santa Clara, California-based chip developer unveiled a new double-layered AI security system on Monday, meant to stop AI agents from going awry. Nvidia stated that the new system would have stopped the recent breach of Hugging Face by OpenAI's models, addressing investor concerns about AI safety risks. However, as reported by Reuters, Nvidia's mammoth financing plan has sparked debate on Wall Street over how much its advanced chips and infrastructure are worth, with some lenders wanting higher guarantees than the company originally outlined. Despite the initial rally, shares later eased from the peak but remained up nearly 2% at $235.39 around 11:45 a.m. EDT, according to Forbes.
The striking part is that the record price remains below nearly every major Wall Street target, with analysts maintaining significant upside potential. According to CNBC, across 61 analysts tracked by S&P Global, Nvidia's average target is now $327.70, which implies roughly 40% upside from Friday's close. Major Wall Street firms have set ambitious price targets, with Morgan Stanley maintaining its $300 price target, Goldman Sachs at $300, UBS at $300, Citi at $315, JPMorgan at $320, RBC Capital at $330, Wedbush at $345, Bank of America at $350, Cantor Fitzgerald at $350, Rosenblatt at $390, Bernstein at $400, and Evercore ISI at $465. Morgan Stanley kept its Overweight rating and $300 price target, pointing to Nvidia's new product cycle and growing demand from AI labs and agentic AI. However, Goldman Sachs has previously warned that expectations around Nvidia are elevated, with investors now needing continued evidence that AI spending can support the valuation.
According to The Financial Express, The Economic Times, Live Mint, CNBC, and The Times of India, the additional authorization lifts Nvidia's remaining buyback capacity to $235 billion, which the company expects to use through fiscal 2028. CEO Jensen Huang emphasized that "Our growth is being driven by a once-in-a-generation platform shift to AI and accelerated computing." The company has forecasted about 70% revenue growth for fiscal 2028, with Nvidia reporting revenue of $96.2 billion for its fiscal second quarter, more than double the level recorded a year earlier. Data-centre revenue surged 117% to $89 billion, as reported by The Economic Times. This growth is being driven by surging demand for AI training and inference that is fueling the company's cash generation capabilities, with demand for Nvidia's GPUs and accompanying networking and software products surging as technology companies, governments and AI developers pour billions of dollars into data centres. The company's CFO Colette Kress recently provided an even more bullish outlook, stating "We expect to grow revenue by approximately 70% in fiscal 2028," which is higher than the 45% rise projected by analysts according to Bloomberg data.
