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Nvidia shares reached an intraday record on Friday, Oct. 2, rising more than 2.5% as investors weighed continued optimism about artificial-intelligence spending alongside the chipmaker’s newly expanded stock-repurchase authorization. Investing.com reported the shares were last up 2.9% at $237.75 in Friday trading, marking a new high for the first time since May. The stock had gained roughly 27% year to date, according to the report.
The advance followed two developments: Nvidia’s board authorized another $150 billion for share repurchases earlier in the week, and Morgan Stanley restored the company as its top semiconductor pick on Friday. The combination put renewed attention on both the demand outlook for AI computing and Nvidia’s ability to return capital while continuing to fund its business. The reported share price was a trading snapshot, not a closing price.
Record buyback authorization adds to investor focus
Nvidia announced on Sept. 28 that its board had approved an additional $150 billion under the existing repurchase program. That lifted the remaining authorized amount to $235 billion, which the company said it expected to execute through fiscal 2028. The authorization gives Nvidia permission to buy shares; it does not mean the full amount has already been spent or that purchases will occur at a fixed pace.
The company described the increase as the largest share-repurchase authorization increase in history. Reuters reported that the $150 billion addition exceeded Apple’s $110 billion authorization increase in 2024. Nvidia’s announcement tied its capacity to return capital to cash generation from its business, while also saying it would continue investing in AI and accelerated computing.
Buybacks can reduce the number of shares outstanding when a company completes repurchases, potentially increasing earnings per share if profits are unchanged. But authorization alone does not determine how many shares will ultimately be bought, the timing of purchases, or their effect on the market price. The company’s stated plan runs through fiscal 2028, rather than representing a one-day market transaction.
Morgan Stanley restores Nvidia as its top chip pick
Friday’s move also followed Morgan Stanley’s decision to reinstate Nvidia as its preferred semiconductor stock. Investing.com reported that the firm’s view came after meetings with chief executive Jensen Huang and other Nvidia executives. The firm cited continued AI demand and an expanding customer base, while characterizing the stock’s valuation as relatively undemanding.
Morgan Stanley’s assessment also pointed to a possible change in constraints on the AI buildout: from the supply of semiconductors toward the availability of data-center sites, electricity and financing. The report said the firm viewed those limits as potentially supportive for Nvidia if customers seek to get more computing output from constrained power supplies. That is the bank’s assessment, rather than a confirmed forecast of how infrastructure investment will develop.
The distinction matters because AI-related demand has supported investor interest in Nvidia, but the scale and durability of spending remain central questions for the sector. The company sells processors and related systems used in AI computing, and its prospects are closely watched as technology companies invest in data-center capacity. Friday’s report did not identify new company guidance or a fresh Nvidia announcement on customer orders as a direct cause of the record.
Competition and the spending outlook remain in view
The record came against a backdrop of strong enthusiasm for AI as well as concerns about whether the industry’s large investments will generate returns commensurate with their cost. The Associated Press noted this week that skepticism has been growing over whether AI will justify the trillions of dollars being spent to develop the technology. Those concerns coexist with continuing demand for Nvidia’s high-end chips and the company’s substantial repurchase authorization.
Reuters’ Sept. 28 coverage also placed the buyback in the context of intensifying competition in AI chips. It reported Nvidia’s shares had trailed some semiconductor peers over the year-to-date period through the prior Friday, even as the company remained a major beneficiary of AI-related demand. That earlier comparison does not establish the relative performance for the full year, and Friday’s record intraday price does not by itself resolve questions about competition or future spending.
What comes next
Nvidia’s announced timeline for using the remaining buyback authorization extends through fiscal 2028. The company has not, in the announcement cited here, specified a schedule for the repurchases. Investors will continue to assess the pace of those purchases alongside the company’s investments, financial results and updates on demand for AI infrastructure.
For Friday’s session, the verified report establishes an intraday record and a quoted price of $237.75 while the shares were up 2.9%; it does not confirm where they finished the day. Morgan Stanley’s renewed endorsement and the board’s authorization provided identifiable company- and analyst-specific developments, while the broader AI spending outlook remained an important part of the market backdrop.
