Nvidia Stock Surge Nears $6 Trillion Milestone
Nvidia (NVDA) is inching closer to a monumental milestone as its stock soars to new heights. The chipmaker's shares closed at $233.95 U.S. on October 2 after reaching an intraday high of $237.88 U.S. on a split-adjusted basis. This surge has pushed Nvidia's market capitalization to $5.64 trillion U.S., making it the world's most valuable publicly traded company.
Analysts predict that if the current rally continues, Nvidia could become the first company ever to hit a $6 trillion U.S. market cap. The stock's impressive run follows a seven-week period of sideways trading, sparked by the company's announcement of a record $150 billion U.S. increase in its stock buyback authorization. Nvidia now plans to take its share repurchase program to $235 billion U.S., viewing its stock as undervalued at current levels.
Despite reporting several quarters of doubling sales and profits year-over-year, Nvidia's stock has only risen 24% this year. In contrast, rival chipmaker Advanced Micro Devices (AMD) has seen its share prices nearly triple amid the artificial intelligence (A.I.) boom. Nvidia's stock currently trades at less than 30 times forward earnings, its lowest level in nearly a decade, and is considered cheap compared to other chip stocks.
Options traders in New York are betting that Nvidia will reach a $6 trillion market cap by the end of October. The company first hit a $5 trillion market capitalization on October 29, 2025. With its significant weighting in major indices, 13% of the Nasdaq Composite and 8% of the S&P 500, Nvidia's stock movements have a substantial impact on the broader market.