Record Nvidia Stock Rally
Nvidia Shares Hit Record Near $238 Amid AI Demand and Massive Buyback
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Key Points
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Morgan Stanley maintained its Overweight rating and $300 price target after analyst Joseph Moore met with CEO Jensen Huang and CFO Colette Kress; that target was below the average $327.70 target among 61 analysts tracked by S&P Global.
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The broader market also supported Nvidia’s advance: a weaker-than-expected U.S. jobs report eased expectations of another near-term Federal Reserve rate hike, while the Nasdaq reached record territory.
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Nvidia’s data-center revenue reached $89 billion in its fiscal second quarter, accounting for more than 90% of total revenue; overall quarterly revenue grew 106% year over year.
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Nvidia launched an Open Agent Safety Platform combining a sandbox runtime with a watchdog on its data-processing units. The company said it would have prevented a breach of Hugging Face by OpenAI’s models, and more than 100 companies—including SAP—support the platform.
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The $150 billion buyback increase surpassed Apple’s previous record authorization of $110 billion in 2024. Nvidia CEO Jensen Huang tied the expansion to the company’s cash generation.
Nvidia shares hit a record near $238 on October 2, lifting the company's market value to about $5.7 trillion. Morgan Stanley restored Nvidia as its top semiconductor pick, citing accelerating AI chip demand and the company's next product cycle. The broader market also helped, as a weaker jobs report eased expectations of another Federal Reserve rate hike.
Nvidia approved a record $150 billion increase to its share-repurchase program, bringing the total remaining authorization to $235 billion through fiscal 2028. This surpassed Apple's previous buyback record of $110 billion announced in 2024. The company's quarterly revenue reached $68.1 billion, up 41% from its May record, driven by data-center sales that accounted for more than 90% of total revenue.
Morgan Stanley Restores Top Semiconductor Rating
Morgan Stanley analyst Joseph Moore met with CEO Jensen Huang and CFO Colette Kress before restoring Nvidia as the firm's top semiconductor pick. Moore maintained an Overweight rating and a $300 price target. This target sits below the average $327.70 target from 61 analysts tracked by S&P Global, suggesting Wall Street sees significant upside potential for the stock.
Data-Center Revenue Drives 106% Growth
Nvidia's fiscal second-quarter revenue jumped 106% year over year to $68.1 billion, a 41% increase from the May record period. Data-center revenue alone reached $89 billion, accounting for more than 90% of total sales. Yahoo Finance noted that quarterly revenue now significantly exceeds prior peaks, reflecting accelerating demand for AI infrastructure and chips.
New Safety Platform Targets Emerging AI Risks
Nvidia launched an Open Agent Safety Platform that combines a sandbox runtime with a watchdog on its data-processing units. The company said the platform would have prevented a breach involving Hugging Face and OpenAI's models. More than 100 companies, including SAP, now support the initiative as agentic-AI applications accelerate across industries.
Record Buyback Signals Confidence in Cash Generation
The $150 billion buyback increase is the largest authorization in corporate history, eclipsing Apple's $110 billion program from 2024. CEO Jensen Huang tied the expansion to Nvidia's strong cash generation and long-term confidence. However, the authorization is not a commitment to spend the full amount through fiscal 2028. GuruFocus reported the buyback demonstrates the company's ability to return capital while investing in growth.
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