Nvidia inches closer to $6 trillion valuation with October in focus
Nvidia is on track to potentially become the first company in history to reach a $6 trillion valuation, with its stock price nearing record highs. The chipmaker's shares closed Friday at $233.95, up 1.3% for the day, bringing its market capitalization to approximately $5.65 trillion based on 24.1 billion outstanding shares. To hit the $6 trillion mark, Nvidia's stock would need to rise to roughly $249, about 6% higher than Friday's close.
Options traders are closely watching the stock, with pricing data suggesting a significant chance of Nvidia reaching a $6 trillion valuation by the end of October. An analysis by CNBC indicated about a 50% probability of this milestone being achieved by October, with a 13% chance of it happening as soon as this week. The likelihood rises to 67% by mid-December, according to options deltas, which measure the expected price movement of the underlying stock.
The company's recent rally follows its expansion of a massive stock repurchase program. On Sept. 28, Nvidia authorized an additional $150 billion for share buybacks, bringing the total remaining under the program to $235 billion. The company also reported strong business growth, with projected fiscal third-quarter revenue of $108 billion, excluding Data Center compute revenue from China. Each $4.15 increase in Nvidia's stock price adds roughly $100 billion to its market capitalization, assuming the share count remains unchanged.