Nvidia stock climbed to a record high on Monday after its Taiwanese manufacturing partner Foxconn reported a surge in AI-driven revenue, signaling continued momentum in demand for AI hardware.
Nvidia stock rose 2.1% to $238.90 on Monday, surpassing its previous all-time closing high of $235.74, reached in May. The company’s market capitalization stands at $5.6 trillion.
Foxconn, formally known as Hon Hai Precision Industry, reported September-quarter revenue of 3.03 trillion New Taiwan dollars ($95.48 billion), up 47% from the same period a year earlier. Foxconn indicated that its artificial-intelligence business would continue to expand through the end of the year, stopping short of offering a precise forecast.
Foxconn’s profile in the U.S. centers on its role assembling Apple devices, but the bulk of its business comes from cloud and networking infrastructure — notably AI servers built around Nvidia chips, according to Barron’s.
Nvidia’s record close comes at a moment when the stock has been trading at a historically low valuation relative to its earnings growth. Nvidia stock had been trading near its lowest forward earnings multiple in more than a decade, even as revenue and net income were each projected to grow by roughly 90% or more in its current fiscal year. At Monday’s close, Nvidia trades at a forward price-to-earnings ratio of 17.1 times, according to Barron’s, citing FactSet.
The stock’s subdued valuation had drawn attention from Nvidia Chief Executive Officer Jensen Huang, who called the company “the world’s first and only growth value stock” and described Nvidia as “incredibly misunderstood” at a Goldman Sachs technology conference last month.
Separately, Nvidia authorized a $150 billion increase to its share repurchase program last week, bringing the total remaining buyback authorization to $235 billion — the largest such authorization increase in history, the company said. The company expects to complete the total remaining program through fiscal year 2028.
Analysts covering Nvidia have set a consensus price target of $334.45 on the shares, according to Barron’s, citing FactSet.
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