Key facts
- Nvidia shares hit a record $237.88 on Friday.
- Nvidia's market value reached approximately $5.7 trillion, the largest of any company.
- The company's board increased its share buyback authorization by $150 billion, totaling $235 billion through fiscal 2028.
- US employers added 29,000 jobs in September, below forecasts.
- Nvidia reported $96.2 billion in revenue for the quarter ended July 26, a 106% increase year-over-year.
- Data centers accounted for $89 billion of Nvidia's quarterly revenue.
Nvidia shares surged to a record high of $237.88 on Friday, propelling the chipmaker's market value to approximately $5.7 trillion and making it the most valuable company globally. This marks the first record high for the stock since May.
The company's market capitalization, calculated by multiplying its share price by the total number of shares outstanding, now surpasses all other businesses. Nvidia's valuation has seen dramatic growth, reaching $1.18 trillion in August 2023, $3 trillion in June 2024, and $5 trillion in October 2025.
The stock's performance is partly driven by its crucial role in the artificial intelligence sector, supplying GPUs essential for training and running AI models. Major tech companies are significant buyers, with Amazon's cloud division planning to deploy about one million Nvidia GPUs by 2027, and xAI already possessing half a million with plans to triple that number.
Nvidia reported robust financial results, with revenue for the quarter ending July 26 reaching $96.2 billion, a 106% increase year-over-year. The data center segment, which houses AI servers, was the primary driver, generating $89 billion in revenue.
In a significant move, Nvidia's board approved an additional $150 billion for its share repurchase program on September 28, bringing the total authorization to $235 billion through fiscal 2028. This move aims to reduce the number of outstanding shares, thereby increasing the value of remaining shares.
Market sentiment was also influenced by a weaker-than-expected US jobs report released on Friday. The economy added only 29,000 jobs in September, falling short of forecasts and leading to reduced expectations of further interest rate hikes by the Federal Reserve. Lower interest rates can benefit companies like Nvidia by making borrowing cheaper for their customers who are investing heavily in AI infrastructure.
Nvidia has also made substantial financial commitments to key AI players, including $30 billion to OpenAI and $10 billion to Anthropic. The company itself has disclosed $366 billion in multiyear AI infrastructure commitments, with a significant portion tied to memory procurement.