Nvidia stock slips 1.5% despite Bernstein reaffirming Outperform rating and $275 target

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Nvidia stock slips

Highlights

Nvidia stock declined 1.5% to $187.62 amid broader market consolidation.
Bernstein reaffirmed its “Outperform” rating and maintained a $275 price target, citing Nvidia’s strong AI positioning.
Technical support remains near $185, with upside resistance at $200 and $210.

From a technical perspective, Nvidia is testing its 20-day exponential moving average (EMA), which sits near $186, offering potential short-term support. Below that, the 50-day moving average around $178.30 is a key medium-term level to monitor. If selling pressure persists, Nvidia could retest the support zone between $175 and $180, a range that served as a consolidation base in November before the December rally. This level also aligns with a key Fibonacci retracement from the October–December uptrend, making it technically significant for swing traders.

Upside resistance is visible at the psychological level of $200, followed by the recent swing high of $210.85. A decisive break above this level would likely trigger further upside toward the $225–$230 area. Relative Strength Index (RSI) is hovering around 55, suggesting that Nvidia is neither overbought nor oversold, allowing for flexibility in direction depending on news and broader market trends. Volume, however, has been declining slightly in recent sessions, indicating reduced conviction on both sides of the trade.

Nvidia stock price dynamics (October 2025 - December 2025). Source: TradingView

The overall trend remains bullish on longer timeframes, with Nvidia continuing to print higher lows and higher highs since Q3 2023. However, momentum is beginning to waver slightly as investors evaluate the valuation premium following Nvidia’s explosive gains this year. The stock’s performance is increasingly sensitive to macro data releases and Fed commentary, which can sway sentiment sharply in either direction.

Bernstein reiteration reflects confidence in Nvidia’s AI dominance

Nvidia gained renewed attention this week after Bernstein analysts reaffirmed their “Outperform” rating on the stock, maintaining a $275 price target. The brokerage highlighted Nvidia’s entrenched leadership in AI GPU hardware and software, along with its growing foothold in inference workloads—a segment previously considered more vulnerable to competition. According to analyst Stacy Rasgon, Nvidia remains “undisputed” in AI training and is now strengthening its position in inference through architectural innovation and software support.

This bullish rating comes as Nvidia continues to diversify its AI ecosystem through partnerships and strategic investments. Notably, the company has finalized a multi-billion-dollar agreement involving increased collaboration with Intel in chip packaging and foundry capacity. The unusual move—purchasing a stake in a potential competitor—signals Nvidia’s commitment to securing manufacturing scale amid global capacity constraints.

Recent developments with AI hardware startup Groq also illustrate Nvidia’s ecosystem strategy. By offering support for startups developing inference accelerators, Nvidia aims to broaden CUDA compatibility while ensuring that core workloads continue to favor its own hardware stack. The market has interpreted these moves as an effort to expand influence rather than defend against disruption, keeping Nvidia at the center of AI infrastructure growth.

Consolidation likely before next leg higher

In the bullish scenario, Nvidia holds the $185 support zone and rebounds toward $200 in early January trading. A break above $200 would likely see a retest of $210. Should volume confirm this move, a sustained rally toward the $225–$230 area becomes plausible, setting up the next leg toward Bernstein’s $275 target later in Q1 2026.

The base case outlook is for continued consolidation between $175 and $205, as markets digest end-of-year earnings revisions and await the next round of tech sector results. In this range, Nvidia remains supported by strong fundamentals but may experience limited upside until broader market sentiment turns more decisively risk-on.

Nvidia has struck a $20 billion deal to acquire key talent and intellectual property from AI chip startup Groq in what is being described as a strategic acqui-hire. While Groq will remain an independent company, Nvidia will absorb much of its engineering team and technology under a non-exclusive licensing agreement.

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