Nvidia stock gains 1.8% amid $5 billion Intel stake acquisition under September agreement

Traders Union
All News
Financial News
Nvidia stock gains

Highlights

Nvidia has acquired a $5 billion stake in Intel, finalizing a deal originally agreed to in September.
The investment signals deeper strategic alignment between the two chipmakers, particularly in AI and data center collaboration.
Nvidia stock gained 1.8% on the news, reflecting investor optimism around the company’s expanding influence in the semiconductor industry.

The stock is currently trading above its 50-day moving average (~$182), which has acted as dynamic support during recent pullbacks. The 200-day moving average lies far below at ~$142, reflecting how far the stock has rallied in 2023. The relative strength index (RSI) is approaching 60, suggesting bullish momentum is rebuilding but still below overbought territory. This setup indicates that bulls remain in control, and the current price structure favors a continuation of the trend if external headwinds remain limited.

Key support sits near the $175–177 zone, an area where price found a floor in December after a sharp sell-off from all-time highs. This level coincides with rising volume and historical buying interest. A secondary, stronger support rests at the $150 level, which is both psychological and technical. Should NVDA revisit this level, it would likely trigger high-frequency buying activity, as algorithmic support programs often anchor around these critical zones.

Nvidia stock price dynamics (November 2025 - January 2025). Source: TradingView

Immediate resistance lies at $204, where the stock was rejected multiple times over the last three months. A clean breakout above this ceiling could initiate a fresh leg higher, potentially retesting the $220–225 range. On the downside, failure to hold above $175 could expose the stock to a deeper correction toward $160. Traders are watching this resistance closely, as a decisive move above it could trigger a wave of short covering and algorithmic momentum flows.

Intel stake signals deeper integration in AI hardware ecosystem

Nvidia revealed a $5 billion equity investment in Intel, acquiring shares at $23.28 under a September agreement. The deal, disclosed after regulatory clearance, instantly made Nvidia one of Intel’s top institutional shareholders with approximately a 4% stake. The strategic implications of this move extend far beyond balance sheet positioning.

Rather than indicating hostile intent, the investment reflects a pivot toward collaboration between two legacy chip giants. The partnership reportedly aims to develop advanced hybrid architectures combining Intel’s CPU technology with Nvidia’s GPU dominance for AI-centric computing systems. This could reshape the future of AI hardware integration, especially in data centers and enterprise environments where both firms are aggressively expanding.

Intel, long considered a lagging player in AI chips, gains credibility and a financial backer as it works to regain competitiveness. Nvidia benefits by anchoring a supply chain partner and gaining influence over architectural choices. This also partially hedges Nvidia’s reliance on TSMC by opening co-development opportunities with Intel Foundry Services in the long term.

Bias tilts bullish above $175

In the near term, Nvidia is expected to trade within the $180–$210 corridor, with momentum favoring an upside breakout if broader markets stabilize. The base-case scenario assumes continued accumulation near the $190 level, with a move toward $204 expected in the next two to four weeks. A sustained close above $204 would open the path to the $220–225 area, marking a new record high.

In a bullish scenario, driven by positive earnings guidance or new AI partnership announcements, Nvidia could extend its rally toward $240 over the next quarter. This would require strong volume confirmation and continued macro support for growth equities.

Nvidia drew investor focus after Bernstein reaffirmed its “Outperform” rating and $275 price target, citing the company’s dominance in AI GPU hardware and software. Analyst Stacy Rasgon noted Nvidia remains unrivaled in AI training and is expanding its edge in inference through innovation and ecosystem depth.

This material may contain third-party opinions, none of the data and information on this webpage constitutes investment advice according to our Disclaimer. While we adhere to strict Editorial Integrity, this post may contain references to products from our partners.