Nvidia nears 6 trillion market cap with record buyback and AI growth
Nvidia Corp. is poised to become the first company in history to reach a $6 trillion market capitalization, fueled by renewed investor interest in AI chipmakers. The surge comes after Nvidia announced record revenue forecasts and the largest share buyback in its history, capitalizing on a valuation near multi-year lows. Analysts highlight the company's strong growth prospects and attractive valuation, making it a haven amid high interest rates and economic uncertainty.
Jim Awad, senior managing director at Clearstead Advisors, noted that Nvidia is appealing from both growth and value perspectives. The stock has risen 28% this year, adding $1.2 trillion to its market cap and nearing $5.8 trillion. Nvidia is also the top contributor to the S&P 500's 14% gain in 2026, despite a shaky start when shares dropped 11% in March due to concerns over AI infrastructure spending.
The company's appeal was further underscored by its $150 billion share buyback authorization, bringing the total to $235 billion. CEO Jensen Huang described this as a reflection of confidence in long-term opportunities. While some argue buybacks inflate earnings per share without organic growth, Nvidia's projected 70% sales growth in fiscal 2028 suggests otherwise. Analysts praise the buyback as a way to share the company's high profits with investors.
Despite these gains, Nvidia trails the broader semiconductor sector, which has surged 86% in 2026. Companies like Micron Technology, Marvell Technology, and Intel have seen share prices climb over 200%. However, Nvidia's net income is expected to double in fiscal 2027, with revenue projected to rise 90%, reinforcing its resilience in the AI-driven market.