Nvidia Hits Record High on AI Optimism and Massive Share Buyback

Nvidia's shares have climbed to an intraday record high, surpassing its previous all-time high as renewed optimism around artificial intelligence spending and a massive share buyback authorization lift the stock.

The chipmaker's board authorized an additional $150 billion for share repurchases this week, bringing the total remaining authorization to $235 billion through fiscal 2028. This new authorization is the largest in corporate history, reflecting Nvidia's confidence in its ability to generate cash while investing heavily in AI infrastructure.

Morgan Stanley has reinstated Nvidia as its top semiconductor pick after meetings with CEO Jensen Huang and other executives. The firm points to continued strength in AI demand and Nvidia's expanding customer base, arguing that the stock's valuation remains relatively undemanding.