Nvidia Stock Chases Record High as Key Supplier's Revenue Booms on AI Demand -- Barrons.com
Dow Jones2026/10/05 17:14By Adam Clark Nvidia stock was pushing for a record high. Results from its artificial-intelligence server partner Foxconn suggest the chip maker should have plenty of momentum to keep moving higher. Nvidia shares were up 1.2% at $236.59 on Monday. If the move holds, it would surpass the stock's all-time closing high of $235.74, reached in May. Investors finally seem to be gaining confidence that a company with a $5.6 trillion valuation can still be undervalued. Nvidia was a Barron's stock pick in May when shares traded around $226 with a forward price-to-earnings ratio of about 24 times. It now trades at a forward multiple of 17.1 times, according to FactSet. For evidence that AI hardware is set to keep booming, just look at Nvidia's Taiwanese partner Foxconn -- formally known as Hon Hai Precision Industry. Foxconn is primarily known in the U.S. as the main contract manufacturer for Apple but makes more of its money from cloud and networking products, including AI servers housing Nvidia chips. Foxconn reported September-quarter revenue of 3.03 trillion New Taiwan dollars ($95.48 billion) on Monday, up 47% from the same period last year. Foxconn said "AI-related operations" were set to keep growing in the fourth quarter, although it didn't provide specific guidance. If Nvidia finally breaks out of the trading range it has occupied since May, then it could move decisively higher. The average price target on Wall Street is $334.45, according to FactSet. Write to Adam Clark at adam.clark@barrons.com This content was created by Barron's, which is operated by Dow Jones & Co. Barron's is published independently from Dow Jones Newswires and The Wall Street Journal. (END) Dow Jones Newswires October 05, 2026 13:14 ET (17:14 GMT)
By Adam Clark
Nvidia stock was pushing for a record high. Results from its artificial-intelligence server partner Foxconn suggest the chip maker should have plenty of momentum to keep moving higher.
Nvidia shares were up 1.2% at $236.59 on Monday. If the move holds, it would surpass the stock's all-time closing high of $235.74, reached in May.
Investors finally seem to be gaining confidence that a company with a $5.6 trillion valuation can still be undervalued. Nvidia was a Barron's stock pick in May when shares traded around $226 with a forward price-to-earnings ratio of about 24 times. It now trades at a forward multiple of 17.1 times, according to FactSet.
For evidence that AI hardware is set to keep booming, just look at Nvidia's Taiwanese partner Foxconn -- formally known as Hon Hai Precision Industry. Foxconn is primarily known in the U.S. as the main contract manufacturer for Apple but makes more of its money from cloud and networking products, including AI servers housing Nvidia chips.
Foxconn reported September-quarter revenue of 3.03 trillion New Taiwan dollars ($95.48 billion) on Monday, up 47% from the same period last year. Foxconn said "AI-related operations" were set to keep growing in the fourth quarter, although it didn't provide specific guidance.
If Nvidia finally breaks out of the trading range it has occupied since May, then it could move decisively higher. The average price target on Wall Street is $334.45, according to FactSet.
Write to Adam Clark at adam.clark@barrons.com
This content was created by Barron's, which is operated by Dow Jones & Co. Barron's is published independently from Dow Jones Newswires and The Wall Street Journal.
(END) Dow Jones Newswires
October 05, 2026 13:14 ET (17:14 GMT)
Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.
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