(Bloomberg) – Nvidia Corp. is poised to become the first company with a $6 trillion market cap as investors return to the artificial intelligence chip maker.
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The stock hit a record high again after the company gave a strong revenue outlook and announced the largest buyback in history, which benefits from a valuation near its lowest level in several years. These two pillars – strong growth and cheap multiples – stand out, especially as investors grapple with high interest rates and poor economic data.
“Nvidia is attractive in terms of both growth and value, and it appears to be a safe haven from the damage that higher interest rates could do to the economy,” said Jim Awad, senior managing director at Clearstead Advisors, which owns Nvidia shares. “All of this makes it a very attractive proposition here and a place that people should continue to turn to if they have any concerns.”
Shares are up 28% this year as part of a rally that has added $1.2 trillion to Nvidia’s market capitalization, bringing it to just under $5.8 trillion. The company is also by far the largest contributor to the S&P 500’s 14% rise in 2026.
The move is particularly striking given that the stock was down 11% for the year as of March 30 as investors questioned the hundreds of billions of dollars spent on AI infrastructure. Since then, sentiment around the AI landscape has changed, with more existential questions about the potential threats it poses to humanity now leading the conversation. At the same time, inflation risks and the likelihood of an interest rate hike by the Federal Reserve have made large-cap technology companies like Nvidia seem relatively safe in the eyes of investors.
“As fears of rising rates have materialized, money is starting to flow into these mega-cap tech stocks because they’re a little more resilient to rate hikes,” said Blue Chip Daily’s Larry Tentarelli, adding that the semiconductor sector has also seen a rebound spurred by Meta Platforms Inc.’s Muse AI agent. There’s “a big rotation back into the semis, a big rotation back into the megacaps and both work well for Nvidia.”
The appeal to investors was highlighted by Nvidia’s approval to invest an additional $150 billion under its existing stock repurchase program, which CEO Jensen Huang said “reflects our confidence in the long-term opportunities ahead.” Before that, he called Nvidia “the world’s first and only growth value stock.”
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