❯ Nvidia hits its first record high in more than four months as its market value reaches about $5.7 trillion

$237.88 intradayNvidia shares rose to a record $237.88 during trading on October 2, taking its market value to roughly $5.7 trillion, before closing at $233.95, up 1.3%. According to Yahoo Finance, it was the stock’s first record since May, and it is up more than 40% from its March 30 low of $165.17.

A buyback and a top pickOn September 28, Nvidia added $150 billion to its share buyback authorization, which the company called the largest authorization increase in history, ahead of Apple’s $110 billion in 2024, bringing the remaining authorization to $235 billion. On October 2, Morgan Stanley analyst Joseph Moore reinstated Nvidia as his top pick in semiconductors and kept a $300 price target.

Jobs data helped tooYahoo Finance attributes the rise to three things: the buyback; server maker Supermicro saying on September 23 that it had begun shipping new GPU racks; and Friday’s weak US jobs report, which showed 29,000 jobs added against 90,000 expected and cooled expectations of rate increases. Nvidia is the world’s most valuable company and last October became the first to pass $5 trillion.

Doubts at the topThe same day, The Information reported that AI-related borrowers have sold about $55 billion of high-yield bonds this year, but borrowing costs are rising and investors are getting choosier about data center projects. Nvidia’s orders ultimately depend on customers being able to borrow. If the bond market tightens and construction slows, the high valuation will be tested first.

▪ SIGNALNvidia’s record high and costlier data center financing arrived in the same week, meaning the stock market and the bond market are pricing the same AI buildout in two different ways.