Nvidia shares hit a new record high on Friday, October 2, as investors continued to show strong confidence in the company and the broader artificial intelligence market.
The stock climbed nearly 3% during trading, reaching about $237.88 and moving above its previous intraday record of $236.54, set in May. Nvidia shares later closed 1.3% higher at $233.95, giving the company a market value of about $5.7 trillion.
That puts Nvidia less than $300 billion away from the $6 trillion market capitalization level.
The stock has recovered strongly from its late-July low, gaining roughly 23% to 25% since then. Investor concerns about the outlook for AI had previously pushed the shares lower and temporarily erased more than $1 trillion from Nvidia’s market value.
One factor supporting the latest rally is growing interest in AI agents, which are expected to create additional demand for computing power and AI chips. Investors are watching the development of AI agent applications and their potential impact on future AI infrastructure spending.
Nvidia also announced a major expansion of its share buyback program this week. The company added $150 billion to its repurchase authorization, bringing the total remaining authorization to $235 billion through fiscal 2028.
The new authorization is a major increase for Nvidia and signals the company’s confidence in its ability to generate cash while continuing to invest in AI infrastructure.
Nvidia continues to dominate the market for data center GPUs, with an estimated 97% share of server GPUs. The company’s latest quarterly revenue increased 106% year over year, while management expects strong revenue growth in the coming years.
Despite the record share price, some analysts argue that Nvidia’s valuation remains below its historical levels. Morgan Stanley recently reinstated Nvidia as its top semiconductor pick after meetings with CEO Jensen Huang and other company executives, citing continued AI demand and Nvidia’s growing customer base.
The firm also said that the main limits on AI infrastructure growth could increasingly shift from chip supply to data center land, electricity and financing.
Nvidia has also increased its focus on AI safety as companies deploy more advanced AI systems and agents.
The company recently introduced a new dual-layer AI safety system designed to help prevent AI agents from taking unwanted actions. Nvidia said the technology could have helped prevent a recent incident involving an AI model and the open-source platform Hugging Face.
The move comes as investors and companies continue to examine whether the large amounts being spent on AI infrastructure will generate sufficient long-term returns.
Nvidia shares are up about 27% this year, putting the company on track for another year of strong gains. With its market value now around $5.7 trillion, investors will continue to watch AI demand, the growth of AI agents and corporate spending on AI infrastructure as key factors for Nvidia’s business.
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