Nvidia Nears $6 Trillion Milestone Amid Sector Rally
Nvidia reached new all-time highs near $240 per share on Monday, pushing its market value to approximately $5.7 trillion. This places the company within striking distance of the $6 trillion milestone. The stock has gained roughly 28% so far this year, recovering from a significant sell-off in July that erased about $1 trillion in value. The company's board approved an additional $150 billion in share buybacks, bringing the total remaining authorization to about $235 billion through fiscal 2028, a move described as the largest repurchase program in corporate history.
Morgan Stanley reinstated Nvidia as its top semiconductor pick, highlighting sustained AI demand and a shift in bottlenecks towards data center power and land. The bank's analysis suggests that Nvidia could benefit as customers seek more computing output from limited electricity. Nvidia's latest quarterly revenue doubled from the previous year, and the company has guided to revenue of about $108 billion for the current quarter. Supply chain signals also remain strong, with Taiwan's Foxconn reporting record September revenue driven by AI server demand.
Despite these gains, Nvidia has lagged behind the broader chip sector this year. A widely tracked semiconductor ETF has surged about 96% in 2026, more than three times Nvidia's advance. This raises questions about whether Nvidia is catching up or if the sector is becoming overstretched. Analysts are divided on the company's future prospects, with some arguing that earnings growth could continue to drive the stock higher, while others caution about potential risks of overinvestment and overcapacity in the AI spending cycle.