Nvidia (read more here) (this site on nvidia) Hits Record High Since May, Within $300B of $6T Value
Nvidia has achieved its first record since May, reaching a valuation of approximately $5.7 trillion, just $300 billion short of becoming the first company to reach a market capitalization of $6 trillion. This significant milestone comes after a nearly 25% rally from its late July low.
October 2, 2026 - 7:32 pm
Located in Santa Clara, California, Nvidia's headquarters have been the center of attention as the chipmaker surges ahead. Credit for this visual goes to Coolcaesar.
A Rapid Recovery
Nvidia's stock rose by 2.9% on Friday, as reported by Bloomberg, extending the recovery that began in late July. This two-month selloff had previously erased over $1 trillion from the company's value. The stock has gained approximately 27% year-to-date, marking a fourth consecutive year of double-digit returns.
Drivers of Recovery
Two primary factors have contributed to Nvidia's recovery:
- AI Agent Demand: Investors anticipate that AI agents, such as Meta's Muse, will drive an increase in demand for specialized chips.
- Enhanced Buyback Program: Nvidia expanded its buyback program by a record $150 billion on Monday, authorizing a total of $235 billion through fiscal 2028. This surpasses Apple's previous record of $110 billion in 2024.
Open Agent Safety Platform and Acquisition
Nvidia also introduced the Open Agent Safety Platform (OASP) on Monday, designed to prevent AI agents from behaving erratically. The OASP pairs a sandbox runtime with a watchdog running on Nvidia's data processing units. Over 100 companies, including SAP, support this platform.
Additionally, Nvidia confirmed on September 3 its acquisition of Hugging Face for $12.93 billion and pledged to keep it open. This acquisition ties together the chips, containment solutions, and the breached platform.
Europe's Role
Interestingly, Europe holds the equipment (ASML machines) that enable advanced Nvidia chips but lags behind in terms of overall value. ASML was just $700 billion away from reaching a trillion dollars in July, representing roughly 43% of its current valuation.
Nvidia holds significant customer shares, valued at $99 billion, including investments from Intel, SpaceX, and OpenAI, up from $7 billion the previous year. Michael Burry expresses skepticism about Nvidia financing its own buyers, arguing that reaching a $6 trillion mark would be a share price, not solely based on shipments.
By Ana Maria Constantin