Nvidia Nears $6 Trillion Market Cap on Record High Stock Rally

Nvidia Corp. is nearing an unprecedented $6 trillion market capitalization as investors flock back to the artificial-intelligence chipmaker after a lackluster start to the year. The company's stock hit a new record high following a strong revenue outlook and the announcement of the largest buyback in history. This move comes as investors navigate high interest rates and weak economic data, making Nvidia an attractive option due to its growth potential and relatively low valuation.

The stock surged as much as 1.9% in early trading on Tuesday, contributing to the S&P 500 Index's first record since August. Nvidia's shares have climbed 30% this year, adding $1.3 trillion to its market cap, now just below $5.8 trillion. The company is also the biggest driver of the S&P 500's 14% gain in 2026. This rebound is notable given the stock's 11% decline earlier in the year amid skepticism about AI infrastructure spending.

Nvidia's authorization of an additional $150 billion for share repurchases underscores its confidence in long-term growth. CEO Jensen Huang described the buyback as reflecting the company's optimism about future opportunities. Wall Street views buybacks favorably as they boost earnings per share and return value to shareholders. Nvidia's buyback is particularly significant as most Big Tech companies are focusing their cash on AI investments.

Despite its impressive growth, Nvidia is still lagging behind the overall semiconductor sector this year. The Philadelphia Stock Exchange Semiconductor Index has gained 87% in 2026, outperforming Nvidia. Analysts note that Nvidia's massive size makes it challenging to achieve the same level of share price movement as smaller peers. However, the company's projected 70% sales growth in fiscal 2028 and expected doubling of net income in fiscal 2027 highlight its strong position in the AI revolution.