Nvidia hits record high as AI optimism, buyback lift shares

Investing.com -- Nvidia (NASDAQ) shares climbed more than 2.5% Friday to an intraday record, breaking above the previous all-time high as renewed optimism around artificial intelligence spending combined with the chipmaker’s record share buyback authorization.

The stock was last up 2.9% at $237.75, putting Nvidia at a fresh record for the first time since May and extending a rally that has lifted the shares roughly 27% this year.

The latest move comes after Nvidia’s board this week authorized an additional $150 billion for share repurchases, bringing its total remaining authorization to $235 billion through fiscal 2028. The new authorization is the largest in corporate history and underscores the company’s confidence in its ability to generate cash while continuing to invest heavily in AI infrastructure.

That confidence was reinforced Friday by Morgan Stanley, which reinstated Nvidia as its top semiconductor pick following meetings with CEO Jensen Huang and other executives. The firm pointed to continued strength in AI demand and Nvidia’s expanding customer base, while arguing that the stock’s valuation remains relatively undemanding.

Morgan Stanley also sees the AI infrastructure bottleneck shifting from semiconductor production toward data center land, power and financing — constraints it believes could favor Nvidia as customers seek to maximize computing output from limited electricity.

The rally comes as enthusiasm around AI remains elevated, with investors increasingly looking beyond infrastructure spending toward the next phase of the technology cycle. The expected IPO of Anthropic is adding to that momentum, with the Claude developer’s potential public debut offering another high-profile test of investor appetite for AI companies and the capital required to build out their computing infrastructure.

For Nvidia, that backdrop provides a fresh catalyst as the stock enters October at record levels, with its massive buyback authorization adding a powerful company-specific signal to an already strong AI investment narrative.

Original Article

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