Nvidia Hits Record Highs Amid Strong AI Demand and New Challenges
Nvidia (NVDA) continues to dominate the market in October 2026, with its stock reaching new record highs. On October 5th, the company closed at $238.90, up 2.12% with an intraday high of $240.10. This surge has pushed Nvidia’s market capitalization to approximately $5.77 trillion, making it the most valuable publicly traded company. While investor sentiment remains bullish, discussions are shifting towards potential growth constraints rather than demand for Nvidia’s accelerators.
Nvidia recently expanded its buyback capacity by $150 billion, the largest share repurchase authorization increase in history. The company expects this authorization to cover repurchases through fiscal year 2028, demonstrating management’s confidence in future cash generation and financial stewardship. Additionally, Nvidia announced plans to acquire Hugging Face for approximately $12.93 billion, aiming to strengthen its software moat but facing regulatory scrutiny.
The company’s fiscal Q2 revenue more than doubled to $96.2 billion, with data center revenue contributing $89 billion. Nvidia’s GAAP operating income and net income increased by 124% and 126%, respectively, highlighting exceptional profitability. The company is also ramping up production of the Vera Rubin platform, complementing its Blackwell Ultra products, and has set a high bar for Q3 with an expected revenue of $108 billion.
However, new systemic risks are emerging. AI financing is becoming a concern as lenders grow cautious about the rapid obsolescence of advanced GPUs. Additionally, power constraints may limit the deployment of Nvidia’s systems, despite strong demand from U.S. hyperscalers and other customers.