Nvidia inches closer to $6 trillion valuation on AI demand surge

Nvidia is edging closer to a historic $6 trillion market valuation after the company's stock hit a new record high. The chipmaker's shares closed at $238, bringing its valuation to roughly $5.76 trillion. To surpass the $6 trillion mark, Nvidia would need its stock to trade above approximately $249 based on the current share count.

The latest surge in Nvidia's stock comes as investors continue to focus on the growing demand for artificial intelligence infrastructure. The company has also reinforced its commitment to shareholder returns by approving an additional $150 billion for stock repurchases. Options activity suggests increasing confidence that Nvidia could reach the $6 trillion milestone before the end of the year, with market pricing indicating a 50% chance by the end of October and a 67% chance by December 18.

Despite its record valuation, Nvidia's forward earnings multiple has remained relatively moderate due to strong profit growth and cash generation. BNP Paribas recently raised its price target for Nvidia to $345, reflecting the sustained high demand for AI-driven solutions.