Nvidia Hits First Record Since May as Value Nears $6 Trillion

Nvidia Corp. shares hit a record for the first time since May as investors pile back into the stock after a two-month selloff that wiped more than $1 trillion off its market value.

Shares of the world’s most valuable public company gained 2.9% on Friday, extending a nearly 25% rally from a late July low when fears surrounding the outlook for artificial intelligence pressured the stock.

The rally has been buoyed in recent weeks by optimism that AI agents like Meta Platforms Inc.’s Muse could drive increased demand for semiconductors. Shares got a further boost after Nvidia announced Monday that it was the size of its buyback plan by a record $150 billion.

Nvidia’s rebound comes after months of quickly shifting sentiment around the state of the AI landscape, including questions over the hundreds of billions of dollars being spent by firms on its infrastructure and safety risks that the technology could pose to humanity.

Read More: AI Whiplash Jolts Stocks as Sentiment Lurches From Fear to Greed

The Santa Clara, California-based chip developer unveiled a new double-layered AI security system on Monday, meant to stop AI agents from going awry. Nvidia said the new system would have stopped the recent breach of Hugging Face by OpenAI’s models — at a time when investors have become more concerned with AI safety.

All told, Nvidia shares have gained about 27% so far this year, on track for their fourth consecutive year of double-digit returns. Its market capitalization now stands at roughly $5.7 trillion, leaving it less than $300 billion away from becoming the first company in history to hit the $6 trillion level.