Nvidia Shares Reach Record High Amid Strong Market Sentiment and Buyback Boost

Nvidia shares hit a record high on October 2, reaching approximately $237.83, marking the first time since May that the stock has surpassed previous highs. This surge comes as the chipmaker's market capitalization approaches $6 trillion, following a recovery from a two-month selloff that had wiped out over $1 trillion from its value.

The stock gained 2.9% on the day and is now up nearly 25% from its late-July low, as reported by Bloomberg. The renewed optimism surrounding artificial intelligence (AI) has played a significant role in this rebound, with investors focusing on the potential for increased semiconductor demand driven by AI technologies.

Analyst Joseph Moore from Morgan Stanley reinstated Nvidia as the firm’s top semiconductor pick after discussions with CEO Jensen Huang and CFO Colette Kress. Morgan Stanley maintained an Overweight rating and set a price target of $300, citing Nvidia's new product cycle and growing demand from AI labs.

Additionally, Nvidia announced a record increase of $150 billion to its share repurchase authorization, bringing the total available under its buyback program to approximately $235 billion through fiscal 2028. This move reflects the company's confidence in its long-term growth prospects.

Despite the recent volatility, Nvidia shares have experienced a remarkable rise of about 27% in 2026 and are on track for a fourth consecutive year of double-digit gains. Analysts remain optimistic, with average price targets suggesting a potential upside of around 40% from the recent closing price.