Nvidia's Latest Rally: How an $80 Billion Buyback and SK Hynix IPO Rewrote the Narrative
Published on 07/11/2026 at 20:13 | Redaktion boerse-global.de
Nvidia single-handedly accounted for roughly 70% of the S&P 500's total gain on Friday, a striking display of its outsize influence on broader markets. The stock closed at €184.60, up 4.04% on the day and 7.34% for the week. That rally capped a remarkable turnaround from a few weeks earlier, when the shares had fallen about 16% from their record high of €202.50 set on May 14. At current levels, the stock sits just under 9% below that peak, but the recovery has been swift.
What makes this rebound particularly noteworthy is the valuation context. Analysts at Bank of America and Citi point out that Nvidia's forward price-to-earnings ratio briefly dipped to 18–19, its lowest reading since early 2019. To put that in perspective, AMD trades at 73 times forward earnings, while Intel commands a multiple of 136. Nvidia, which is growing faster than both, suddenly looked like the cheapest name in the chip sector. That disconnect has drawn buyers back in force.
The catalyst for the move came from multiple directions within a 48-hour window. A $6 billion deal involving SpaceX's "Reflection AI" initiative lifted sentiment, while Dell and Super Micro continued to expand their server platforms using Nvidia's Vera Rubin and NVL4 architectures. Both Bank of America and Citi reaffirmed their buy ratings, with price targets of $350 and $300 respectively, citing an on-track product roadmap that includes the upcoming Kyber chip. Fears about delays to the next-generation processor, flagged in some corners, were brushed aside by the investment banks.
Nvidia itself reinforced the bullish narrative with capital-allocation moves. The company confirmed an $80 billion share buyback program and raised its quarterly dividend to $0.25 per share, with a stated goal of returning half of its cash flow to shareholders. The message is clear: management sees the stock as undervalued even at current levels.
Should investors sell immediately? Or is it worth buying Nvidia?
The successful US listing of SK Hynix on July 10, which raised $26.5 billion, added further tailwinds. The South Korean memory-chip supplier provides the high-bandwidth memory essential for Nvidia's AI processors, and the IPO underscored the depth of demand in the AI supply chain. Traders, however, bet more on Nvidia's platform dominance—backed by the CUDA ecosystem of over 4 million developers—than on cyclical memory plays.
From a technical perspective, the stock has reclaimed its 50-day moving average of €181.22, while the 200-day average at €164.78 lies 12% below the current price—a sign that the long-term uptrend remains intact. The RSI of 58.6 indicates moderate buying pressure without overheating. Market capitalisation now stands at €4.33 trillion.
Not everyone is exuberant. Jim Cramer recently noted that several Nvidia competitors are trading at higher forward P/E multiples for next year's earnings, a "mismatch" given Nvidia's technological lead. Meanwhile, concerns persist about Chinese tech firms shifting budgets toward domestic AI accelerators, though Nvidia's current guidance deliberately excludes China-related AI revenue, providing a buffer against export restrictions.
Nvidia at a turning point? This analysis reveals what investors need to know now.
Looking ahead, the next quarterly results are due on August 26, with the consensus forecasting revenue of $91.73 billion and earnings per share of $2.08. The combination of a rare valuation discount, an aggressive buyback, and a robust product pipeline suggests that the AI giant still has room to run—even after a 31.58% gain over the past twelve months.
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