Why is Nvidia stock up? On Friday the chipmaker rose 2.9% to an all-time high near $237.75, its first record since May, pushing its market value toward $6 trillion. AMD added about 2.6%, and AI chip names led the Nasdaq Composite 1.2% higher as the Nasdaq 100 closed at a record.
It caps a sharp comeback. Nvidia has rallied nearly 25% from a late-July low, after a two-month selloff that wiped more than $1 trillion off its value. Here is what turned it around, and why AMD has been the even bigger winner this year.
Why Is Nvidia Stock Up? Three Catalysts
1. Morgan Stanley named it a top pick again
Before Friday’s open, Morgan Stanley analyst Joseph Moore reinstated Nvidia as the bank’s top semiconductor pick, arguing it remains best placed to benefit from AI infrastructure spending. Calls like that from a major bank can pull big institutional money back into a stock, and Nvidia was rising in pre-market trading straight after.
2. A record $150 billion buyback
On 28 September Nvidia’s board added $150 billion to its share repurchase programme, described as the largest buyback increase in corporate history, taking remaining capacity to around $235 billion through fiscal 2028. CEO Jensen Huang tied it to what he calls a once-in-a-generation shift to AI computing. Buybacks reduce the share count over time, which lifts earnings per share.
3. A softer jobs report cooled rate fears
The US added just 29,000 jobs in September, cutting the odds of an October Fed hike to below 25% and pulling bond yields back from multi-decade highs. Lower expected rates make future profits worth more today, which helps high-growth tech stocks most. We cover that in Will the Fed Raise Rates in October?
Why AMD Has Beaten Nvidia in 2026
Nvidia is up roughly 27% this year. AMD is up around 187%, its widest lead over Nvidia since the AI boom began, and on 21 September it closed above a $1 trillion market value for the first time. The reason is a shift in how AI is used. The first wave rewarded the graphics chips (GPUs) used to train large models, where Nvidia dominates. The newer wave of AI agents, which plan, call tools and loop through tasks, leans much more on general-purpose processors (CPUs), where AMD’s EPYC server chips are strong.
“Nvidia sold the shovels for training AI. AMD is selling them for running it.”
Not Every AI Hardware Stock Joined In
The rally was concentrated in AI compute. Micron slipped about 1.5% despite record earnings, and hard drive makers Seagate and Western Digital fell sharply after Toshiba moved to double its disk output. We break that split down in Micron earnings vs the storage selloff.
How to Trade Nvidia and AMD as a Beginner
You can buy the shares outright, trade them with share CFDs to go long or short, or get exposure to both through the Nasdaq 100. AI chip stocks can move 3 to 10% in a day on analyst calls, earnings and Fed news, so keep positions small and always use a stop-loss. Compare our best brokers for Nasdaq 100 and best brokers for stocks.
So, why is Nvidia stock up? A top-pick call from Morgan Stanley, a record buyback and a friendlier rate outlook landed together, sending it to its first record in five months. The bigger story of 2026, though, is AMD catching up fast.
This article is for informational purposes only and does not constitute financial advice or a recommendation to buy or sell any asset. Market data described reflects conditions as of the close on October 2, 2026. Trading shares, indices and CFDs involves significant risk of loss.
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