Nvidia Stock Surges Toward $6 Trillion Valuation Milestone
Key Points
- Nvidia shares rose 3% intraday but closed 1.3% below May record highs
- Stock rallied 23% from late July lows amid shifting AI sentiment
- Company announced record $150 billion increase to share buyback plan
- Market capitalization reached $5.6 trillion, nearing historic $6 trillion mark
Editorial Deep Dive & Context
Nvidia Corp. shares touched an intraday high for the first time since May before trimming gains and closing just short of a record as investors piled back into the stock after a two-month selloff that wiped out more than $1 trillion of market value. The world’s most valuable public company gained as much as 3% on Friday to touch an intraday record and closed up 1.3%, shy of its May high. This rise extends a 23% rally from a late July low when fears surrounding the outlook for artificial intelligence pressured the chip developer’s stock. The rebound has been buoyed by optimism that AI agents like Meta Platforms Inc.’s Muse could drive increased demand for semiconductors. Shares received a further boost after Nvidia announced it was increasing its buyback plan by a record $150 billion. The Santa Clara-based company also unveiled a new double-layered AI security system intended to stop AI agents from going awry, aiming to address investor concerns about safety risks. All told, Nvidia shares have gained about 25% so far this year, on track for their fourth consecutive year of double-digit returns. Its market capitalization now stands at roughly $5.6 trillion, leaving it less than $400 billion away from becoming the first company in history to hit the $6 trillion level
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