Nvidia Reclaims Ground as Buyback Hits $235 Billion and Analysts Stay Bullish

Nvidia rebounds to EUR 208.90 after OpenAI's revenue accounting nuance sparked a selloff; Morgan Stanley keeps $300 target.

Nvidia shares are finding their footing again, trading at EUR 208.90 on Friday — a gain of 1.6% — after a sector-wide selloff the previous day knocked the stock down 3.1% to EUR 205.60. The recovery came as investors sorted through a wave of headlines that had briefly rattled confidence in the broader semiconductor and AI complex.

At the center of the turbulence was a Financial Times report revealing that OpenAI's annualized revenue run rate stood at just under $50 billion at the end of September, well below the $70 billion figures that had been circulating. The roughly $20 billion gap, however, traces back to an accounting distinction: revenue booked through cloud partners was not counted in full. In regular US trading, Nvidia shares had dropped 2.94% in reaction to the initial reports.

No Cracks in Hardware Demand

Market watchers see little reason to extrapolate a slowdown in actual chip orders from what amounts to a revenue recognition nuance. Demand for data-center accelerator hardware remains robust, with leading cloud providers pressing ahead with their buildout plans undiminished. Rising oil prices and elevated volatility in the bond market added to the sector's jitters on Thursday, dragging down not only Nvidia but also Broadcom and Micron, according to AP.

Morgan Stanley reinforced its conviction in Nvidia's fundamentals, with analyst Joseph Moore reiterating an "Overweight" rating and a $300 price target. Moore pointed out that demand for advanced graphics processors continues to outstrip available supply by a wide margin, and that bottlenecks in power supply and data-center capacity are more likely to stretch out the expansion cycle than to bring it to a halt.

A separate vote of confidence arrived Wednesday from Yorkville Ives, which initiated coverage with an "Outperform" rating and a $300 target, citing Nvidia's position as the foundational computing platform for the AI economy.

Capital Returns and Quarterly Outlook

Nvidia's own capital allocation is providing additional ballast. The board recently authorized a $150 billion increase to its existing share repurchase program, lifting the total remaining buyback authorization to $235 billion. Management intends to return those funds to shareholders in full by fiscal 2028.

On the operational front, the company has guided for revenue of $108.0 billion in the current third quarter, with its customary margin of plus or minus two percent. Official results are due on November 17.

Despite the recent dip, the stock remains within striking distance of its 52-week high, just 3.3% below the peak. Year-to-date, shares are up 28%. The swift parsing of the OpenAI figures suggests investors are increasingly separating short-term confusion around software partners from the tangible investments flowing into physical AI infrastructure.