Nvidia (NVDA) Closes at Record $238.90 as Analyst Sets $345 Target on AI Agent Demand

Key Takeaways

• Nvidia shares reached an all-time closing high of $238.90, bringing market capitalization to approximately $5.76 trillion.
• The company needs to surpass $248.96 per share to achieve a $6 trillion valuation using its existing share count.
• BNP Paribas upgraded its price target from $285 to $345, driven by anticipated AI agent adoption.
• Manufacturing partner Foxconn reported quarterly revenue growth of 47%, signaling robust AI server demand.
• The chipmaker expanded its share repurchase authorization by $150 billion, marking the largest such increase ever recorded.

Nvidia shares concluded Monday’s trading session at an unprecedented $238.90, representing a 2% gain for the day. This performance pushes the semiconductor giant’s total market capitalization close to $5.76 trillion.

NVIDIA Corporation, NVDA

This marks the first time the stock has closed at a record level since May. The company’s previous peak closing price stood at $235.74.

Reaching a $6 trillion market cap milestone requires the stock to climb above $248.96 per share. This calculation uses Nvidia’s current outstanding share count, though that figure may change as the company executes its active buyback program.

Wall Street analyst Karl Ackerman from BNP Paribas believes additional upside remains ahead. He elevated his price objective to $345 from $285 this week.

His bullish stance revolves around emerging AI agent technology, which he anticipates will fuel increased demand for the company’s processing hardware. Ackerman forecasts that Nvidia will control over 75% of the AI computing market measured by revenue.

Factors Behind the Bullish Outlook

According to Ackerman, the company’s full-rack AI infrastructure combined with its CUDA software ecosystem creates a competitive moat that rivals struggle to replicate. He projects gross margins will remain above 70%, even as competitive pressure intensifies.

His valuation methodology applies a conservative 15x price-to-earnings multiple to his 2028 earnings estimate, supplemented by the company’s cash position. This represents a modest framework for a stock experiencing continued appreciation.

Barron’s featured Nvidia as a top pick in May when shares traded near $226. That recommendation projected the stock would touch $300 within a year. Current momentum suggests that target may arrive sooner than anticipated.

Supply chain partner Foxconn provided additional momentum Monday. The Taiwan-based manufacturer, officially named Hon Hai Precision Industry, disclosed September-quarter revenue of 3.03 trillion New Taiwan dollars, equivalent to $95.48 billion.

This represents a 47% increase compared to the prior-year period. Foxconn indicated its AI-focused operations would continue growing through the fourth quarter, though it stopped short of providing specific guidance.

While Foxconn gained recognition in the U.S. for producing Apple products, which remained flat Monday, the majority of its business now stems from cloud infrastructure and networking equipment, particularly AI servers incorporating Nvidia processors.

Attractive Valuation Despite Record Prices

Even with shares at all-time highs, Nvidia currently trades near its lowest forward earnings multiple seen in more than ten years. This disconnect appears striking given that both revenue and profit are projected to expand roughly 90% during the current fiscal year.

Monday’s closing price translates to a forward price-to-earnings ratio of 17.1x, based on FactSet data referenced by Barron’s. CEO Jensen Huang has personally addressed this valuation anomaly.

Speaking at a Goldman Sachs technology conference last month, Huang described Nvidia as “the world’s first and only growth value stock.” He characterized the company as “incredibly misunderstood.”

Goldman Sachs shares declined 1% that day. The chipmaker also announced a significant capital allocation decision last week.

Management approved a $150 billion expansion of its share buyback authorization. This brings total remaining repurchase capacity to $235 billion, which the company describes as the largest authorization increase on record.

Nvidia plans to execute the entire buyback program by the end of fiscal 2028. Wall Street analysts surveyed by FactSet maintain a consensus price target of $334.45 on the shares.