Nvidia has crossed $5.7 trillion in market value, setting a record for a publicly traded company. Here is what drove the surge.

First, interest rates. The weak September US jobs report cooled expectations of another Federal Reserve hike. Lower rates make high-growth stocks like Nvidia more attractive to investors.

Second, Wall Street confidence. Morgan Stanley reinstated Nvidia as its Top Pick in semiconductors after meetings with CEO Jensen Huang, keeping a $300 price target.

Third, shareholder returns. Nvidia added $150 billion to its buyback programme, taking total authorisation to $235 billion through fiscal 2028. Buybacks reduce share count and can lift earnings per share.

Fourth, AI demand. Nvidia and SoftBank each completed $30 billion tranches in OpenAI’s latest funding round. Data-centre revenue hit $89 billion in the last quarter, up 117 per cent year on year.

The stock is up about 24 per cent this year. The main risk remains the sheer scale of AI infrastructure spending and how it is financed.