Nvidia Reaches $5.7 Trillion Market Capitalization Following Record Stock Buyback

Nvidia reached a market capitalization of over $5.7 trillion for the first time on October 2, 2026. The chipmaker's stock rose intraday by up to 2.8% and marked a new all-time high of $237.55, as multiple financial sources consistently reported. At midday, the stock was trading around $235.50.

The record comes just one day after the highest closing price since mid-May 2026. The previous day, Nvidia had already added $59.7 billion in market value and closed with a gain of 1.09% at a market capitalization of $5.56 trillion.

Largest Stock Buyback Program in U.S. History

On September 28, 2026, the board of directors approved an increase of the existing stock buyback program by $150 billion. This brings the total volume of the buyback program to $235 billion – a sum that, according to multiple sources including The New York Times and Common Dreams, represents the largest single repurchase authorization in U.S. corporate history.

Execution is scheduled to be completed by fiscal year 2028. Nvidia had already increased the program by $80 billion just four months earlier, in June 2026.

OpenAI Funding as Price Driver

A significant catalyst for the price rally on October 2 was the completion of the OpenAI funding round. Nvidia and SoftBank each paid their final tranche of $10 billion on October 1 and 2, respectively, thereby fulfilling their respective $30 billion commitments. The Information reported, citing people familiar with the matter and a SoftBank statement, that this completion resolved existing doubts about the progress of the OpenAI funding.

The investment underscores Nvidia's central position in the AI ecosystem. The company dominates the market for AI computing power and benefits as the primary supplier of high-performance processors for training and operating large language models.

Quarterly Development and Annual Performance

The Nvidia stock rose 14% in the third quarter of 2026. Since the beginning of the year through October 2, the stock recorded a gain of over 24%. Over the twelve months ending September 30, 2026, shares climbed 24%, with market capitalization at approximately $5.42 trillion at the end of September.

The general market environment benefited tech stocks: following the release of the latest U.S. labor market data, investors reduced their expectations for a Federal Reserve interest rate hike in October 2026. The improved risk appetite drove a broad rally in American technology stocks, led by Nvidia as the AI bellwether.

Business Model and Revenue Structure

Nvidia is the global leader in developing programmable graphics processors and related software. The product portfolio is divided into two main areas:

• Computing and networking solutions (89% of revenue): Data center platforms, Ethernet connectivity solutions, high-performance computing, infrastructure for autonomous vehicles, enterprise AI systems, processors for cryptocurrency mining, and embedded systems
• Graphics processors (11%): GeForce, NVIDIA RTX, and Quadro products for PCs, gaming consoles, workstations, and video streaming platforms

Broken down by industry, 88.3% comes from data center, 8.7% from gaming, 1.4% from professional visualization, 1.3% from automotive, and 0.3% from other areas. Geographically, Nvidia generates 46.9% of revenue in the United States, 18.2% in Singapore, 15.8% in Taiwan, and 13.1% in China and Hong Kong.

Market Environment and Valuation

On October 2, 2026, major U.S. indices closed in the black: The NASDAQ Composite gained 1.19% to 27,190.86 points, the S&P 500 rose 0.73% to 7,722.72 points. The German DAX increased 1.16% to 25,273 points.

The aggressive stock buyback program signals management confidence in its own valuation and is intended to support the stock price through a reduction in available shares. Critics of buyback programs argue that capital should instead flow into research, development, or higher wages – an objection that regularly arises at record-high market valuations.