Nvidia stock rises 7.7% as Jensen Huang flags long AI buildout cycle

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Highlights

Nvidia shares jumped 7.7% after CEO Jensen Huang said the AI infrastructure buildout still has seven to eight years to run.
The comments reinforced expectations of sustained demand for Nvidia’s chips despite concerns about peaking AI spending.
Technically, the stock rebounded strongly but still faces key resistance near its 200-day moving average.

Nvidia (NVDA) staged a sharp bullish move, rising 7.7% to trade at $185.09, marking its strongest daily performance in recent weeks. The rally pushed the stock back above its 20-day and 50-day simple moving averages, signaling improving short-term momentum after a prolonged consolidation phase. However, NVDA remains marginally below its 200-day moving average near the $186–188 area, which continues to act as a critical long-term resistance level and trend filter.

From a technical perspective, the recent surge was accompanied by a clear expansion in volume, lending credibility to the breakout attempt. The Relative Strength Index has climbed toward the 60 level, reflecting strengthening bullish momentum while still avoiding overbought conditions. This suggests room for further upside if buyers remain active. Meanwhile, the MACD histogram has turned positive for the first time in several sessions, hinting at a potential bullish crossover that could attract momentum-driven inflows.

Nvidia stock price dynamics (December 2025 - February 2026). Source: TradingView

Key support is now seen in the $176–178 zone, which coincides with the former resistance area and the rising 50-day moving average. A deeper pullback could find secondary support near $165, a level that has repeatedly attracted dip buyers over the past two months. On the upside, immediate resistance is located at $190, followed by the psychologically important $200 mark. A daily close above the 200-day moving average would be technically significant, opening the door for a broader trend reversal and renewed medium-term upside.

Huang’s AI buildout outlook reshapes demand expectations

Nvidia CEO Jensen Huang said the surge in artificial intelligence capital expenditure is both appropriate and necessary, describing the current cycle as a once-in-a-generation infrastructure buildout. Huang stated that the AI expansion still has seven to eight years ahead, reinforcing the view that global spending on compute, networking, and data centers remains in an early phase rather than near a peak. He emphasized that AI will fundamentally change how all computing is done.

Huang stressed that demand for Nvidia’s products is sky high, pointing to an unusual pricing dynamic in which GPUs sold six years ago are now increasing in value. This, he argued, highlights persistent supply tightness and sustained interest in AI hardware across the industry. He noted that leading AI developers such as OpenAI and Anthropic are already generating revenue but remain computer constrained, limiting their ability to scale. According to Huang, these companies require significantly more computing power and are dependent on Nvidia’s latest-generation chips to expand operations efficiently.

Addressing competition, Huang acknowledged China as a clear rival but argued that conceding the Chinese market would undermine global leadership ambitions. He also dismissed concerns around customer concentration, stating there is “no drama” with OpenAI and reiterating its need for Nvidia’s newest processors. On the adoption side, Huang highlighted Meta as the most effective user of AI technology today, underscoring strong enterprise deployment rather than speculative experimentation. He concluded that his primary concern is not competition but ensuring AI is effective, signaling confidence that demand growth will continue to justify elevated investment levels.

Price outlook and short-term scenarios

In the short term, Nvidia’s price action will likely hinge on whether the stock can decisively reclaim and hold above the 200-day moving average. In a bullish scenario, a sustained break above $190 would confirm trend reversal signals and could trigger follow-through buying toward $205 and potentially $220 over the coming weeks. Such a move would likely require continued positive sentiment around AI spending and supportive broader market conditions.

In a neutral scenario, NVDA may consolidate between $175 and $190 as the market digests the recent gains. This range-bound behavior would allow technical indicators to reset while maintaining a constructive structure above key moving averages.

Goldman Sachs reaffirmed a Buy rating and a $250 price target on Nvidia, citing sustained AI accelerator demand, strong hyperscaler capex, and Nvidia’s continued dominance of the AI compute stack. While fiscal 2026 expectations are largely priced in, the bank sees underappreciated upside from next-generation AI models, sovereign AI, and broader enterprise adoption.

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