NVIDIA SHARES NEAR $6 TRILLION VALUATION AS OPTIONS TRADERS WATCH

Nvidia's share price has pushed the chipmaker's market value to just under $5.7 trillion, with pricing in the options market suggesting the company has roughly a 50% chance of crossing the $6 trillion threshold before the end of the month, according to CNBC. The company's shares rose 1.3% on Friday, a move that helped drive the Nasdaq-100 Index to a new closing record, its first since May. Nvidia accounts for 13% of the Nasdaq-100 and 8% of the S&P 500 Index. Based on its current share count, the stock would need to reach $248 to pass the $6 trillion mark. Options pricing cited by CNBC also points to a 13% chance the milestone is reached this week, a 67% chance it happens by 18 December, and a 1-in-16 chance the valuation reaches $7 trillion by 20 November. Bloomberg separately reported that Nvidia is "on the verge" of the $6 trillion valuation, noting the stock has risen almost 30% this year.

The rally followed seven weeks of largely sideways trading for the stock, a period that included a meeting between President Donald Trump and corporate executives involved in what Trump has referred to as "super intelligence," CNBC reported. Nvidia is led by Jensen Huang. Ben Emons, managing director at Highline Asset Management, said in a note to clients that the company's recent share buyback announcement was "not just a payout but a capital-allocation event that asserts confidence in long-run AI demand." CNBC noted that some of Nvidia's call options are currently trading with higher implied volatility than equivalent put options, according to data from Barchart.

CNBC cautioned that delta-based estimates of potential price moves cut both ways, meaning a decline of the same scale is statistically just as likely as a rise. No date has been confirmed for when, or whether, Nvidia will reach the $6 trillion valuation, with the figures representing market-implied probabilities rather than certainties. The options data covers contracts expiring this week and on 30 October.