Why is NVIDIA Stock at an All-Time High?

NVIDIA stock is trading at record highs and drawing global attention. The company has become the first publicly listed semiconductor firm to have a near $5 trillion market cap, as investors continue to bet on its dominant position in artificial intelligence (AI) infrastructure.

Nvidia share price jumped more than 5% on October 28 to hit an all-time high of $203.15 before closing at a record high of $201.03, according to Google Finance data. If you are an Indian investor tracking the Nvidia (NVDA) stock price, you must be wondering what is driving this surge?

Want to know how sustainable this rally in Nvidia stock is, and how it fits into your portfolio? This blog breaks it down for you as we look at NVIDIA’s core business performance, its latest strategic deals, the factors behind investor optimism, and the key risks to watch.

What is Driving NVIDIA Stock Rally?

Strong business fundamentals

NVIDIA has evolved from a gaming-chip company to a full-scale AI computing powerhouse. In Q2 FY26, the company’s total revenue surged 56% YoY and the data-centre segment, which includes AI chips used by cloud providers and enterprises, also saw similar growth.

Gross margin also remained healthy reflecting strong pricing power even as production scales up. NVIDIA’s Blackwell GPU architecture and AI-focused software platforms have further strengthened its leadership position. 

Nvidia’s key number at a glance

Source: Nvidia Q2 Earnings Report (FY26), CompaniesMarketCap

NVIDIA’s mix of scale, profitability, and consistent innovation has made it the top choice for investors seeking exposure to the global AI boom.

Recent Deals Boosting NVDA Stock Price

NVIDIA has been actively expanding through partnerships that strengthen its ecosystem and future growth pipeline.

These partnerships validate the company’s technology leadership and add visibility to future growth.

Why is NVDA Stock Price at Record Highs?

The surge in NVIDIA stock is a result of multiple forces aligning:

1. Explosive AI demand: Cloud companies, startups, and governments are rapidly building AI infrastructure that depends heavily on NVIDIA’s GPUs.
2. Scarcity premium: Competitors like AMD and Intel are still catching up, allowing NVIDIA to command a pricing edge.
3. High profitability: Operating margins above 70% give investors confidence that growth is sustainable.
4. Capital return: NVIDIA repurchased over $15 billion worth of shares in the past year, which supports its stock price.
5. Investor sentiment: Many analysts see NVIDIA as the “picks and shovels” play of the AI era, similar to how Microsoft and Google defined the software era.

What Risks Could Slow NVIDIA’s Momentum?

No stock, however strong, is risk-free. Investors must stay aware of the following factors before adding NVDA to their portfolio:

• Valuation risk: The NVIDIA stock price already factors in very high growth expectations. Any earnings miss could trigger volatility.
• Customer concentration: A few large tech companies contribute a significant share of NVIDIA’s revenue, which increases dependency risk.
• Rising competition: Tech giants like Google (TPU) and AMD are developing their own AI chips, which could reduce NVIDIA’s pricing advantage.
• Execution risk: Scaling next-generation products like Blackwell GPUs requires flawless supply chain management.

What this Means for Indian Investors

For Indian investors using platforms like INDmoney to invest in US stocks from India, NVIDIA offers exposure to one of the strongest global technology themes. However, the NVDA stock should be approached with a long-term mindset and careful allocation.

• Consider it a core holding for long-term exposure to AI and data-centre growth.
• Limit position size to manage volatility risk due to high valuation.
• Track metrics like data-centre revenue growth, new deal announcements, and US policy updates.
• Diversify across other US and Indian tech stocks for better balance.

What’s to Watch In Nvidia?

The NVIDIA stock is at an all-time high because the company has executed strongly, captured the AI infrastructure wave, and continues to expand through high-value partnerships. Its financials show unmatched growth, profitability, and scalability.

However, with a market cap above $4.8 trillion and expectations sky-high, the room for error is narrow. NVIDIA may continue to lead the next decade of AI-driven growth, but like every great stock, success will depend on consistent performance and execution.

Disclaimer:

The content is meant for education and general information purposes only. Investments in the securities market are subject to market risks, read all the related documents carefully before investing. Past performance is not indicative of future returns. The securities quoted are exemplary and are not a recommendation. This in no way is to be construed as financial advice or a recommendation to invest in any specific stock or financial instrument. The figures mentioned in this article are indicative and for general informational purposes only. Readers are encouraged to verify the exact numbers and financial data from official sources such as company filings, earnings reports, and financial news platforms. The Company strongly encourages its users/viewers to conduct their own research, and consult with a registered financial advisor before making any investment decisions. All disputes in relation to the content would not have access to an exchange investor redressal forum or arbitration mechanism. Registered office address: Office No. 507, 5th Floor, Pragya II, Block 15-C1, Zone-1, Road No. 11, Processing Area, GIFT SEZ, GIFT City, Gandhinagar – 382355.