Nvidia’s valuation reached $5.77 trillion during Monday’s trading as its shares advanced to another intraday peak. Gains across the company and other artificial intelligence stocks also helped lift the Nasdaq Composite to a record close, underscoring their influence on broader equity performance.
After starting Monday at $236.07, Nvidia traded as high as $239.86 in the afternoon, extending a record-setting advance from Friday. The share later closed 2.12% higher at a record $238.90, marking another milestone. A further gain of 3.8%, putting the shares near $248, would make it the first company to achieve a $6 trillion valuation.
The Nasdaq finished at 27,477.31, gaining 1.05% for the session. Nvidia represents 13% of that benchmark and 8% of the S&P 500. Market observers say the world’s largest company now carries enough weight for its share movements to largely determine the direction of those indices.
Continued investment in AI infrastructure worldwide has supported demand for Nvidia’s products. Its graphics processing units, networking technology and related systems have made the chip designer a central participant in the competition to supply AI hardware.
Financial results have reinforced that position. Nvidia’s second quarter report, released in August, showed revenue of $96.2 billion, with both sales and earnings exceeding elevated Wall Street forecasts. Management projected third quarter revenue of $105.8 billion to $110.1 billion, also above expectations.
The shares have recovered almost 25% from their late-July trough over a period slightly longer than two months. Two developments strengthened investor sentiment: a record $150 billion addition to Nvidia’s repurchase authorization, announced on September 28, and a meeting the next day between U.S. President Donald Trump and AI executives, including Nvidia chief Jensen Huang.
The latest advance follows a rapid succession of valuation milestones. Nvidia cleared $2 trillion for the first time in March 2024 and needed only 66 trading sessions to reach $3 trillion. Its value subsequently passed $4 trillion in July that year and $5 trillion in October, a three-month interval between those last two thresholds.
Even as valuations have climbed, investors have repeatedly questioned the durability of the AI rally. Trading in the sector has been volatile since the introduction of OpenAI’s ChatGPT, with recurring debate over whether an AI bubble exists and when it might collapse.
Another concern involves arrangements described as circular investing: Nvidia takes stakes in customers that subsequently buy more of its chips. Similar questions have surrounded other companies in the AI sector.
Competition is also intensifying. AMD recently introduced a rack-scale system challenging Nvidia’s offering. Meanwhile, Amazon and Google, both Nvidia customers, are expanding the availability of their internally developed chips to outside clients.
