Nvidia stock gains 2.9% as company denies using pirated books to train AI models

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Highlights

Nvidia says it did not use pirated books to train its AI models and is seeking dismissal of a copyright lawsuit.
The stock rose 2.9% as investors appeared to downplay legal risks.
Market focus remains on strong AI chip demand and upcoming earnings catalysts.

From a technical perspective, Nvidia shares remain in a broader bullish structure despite recent volatility. NVDA is trading comfortably above its medium- and long-term moving averages, confirming that the dominant trend remains upward. The 50-day moving average is trending above the 200-day moving average, a classic bullish signal that reflects sustained institutional demand.

In the near term, the $175–$180 zone acts as a critical support area. This range coincides with recent consolidation lows and has already attracted dip buyers multiple times, reinforcing its importance. A decisive break below this zone would weaken the short-term bullish bias and expose Nvidia to a deeper correction toward the $165 area. On the upside, initial resistance is located near $200, a psychologically significant round number where sellers have previously emerged. Beyond that, stronger resistance is seen in the $212–$220 range, which corresponds to prior swing highs and a zone where profit-taking intensified earlier in the year.

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

Momentum indicators suggest improving conditions. The relative strength index has rebounded from neutral territory and is not yet signaling overbought conditions, leaving room for further upside. Volume during the latest rebound has been supportive, though not explosive, suggesting that the next directional move will likely require a fresh catalyst, most likely earnings or major news related to AI spending.

AI training controversy and demand narrative

Market attention has recently shifted toward Nvidia’s legal response to allegations surrounding AI training data. Nvidia has stated that references to Anna’s Archive do not prove that pirated books were used to train its AI models. The company argues that mere contact with the archive does not equate to downloading or incorporating copyrighted materials, and it is pushing to have the lawsuit dismissed. This clarification is important for investors, as regulatory and legal scrutiny over AI data sourcing is intensifying across the technology sector.

While legal uncertainty creates headline risk, it has not materially altered Nvidia’s core investment thesis so far. The dominant narrative remains explosive demand for AI infrastructure. Nvidia continues to benefit from aggressive capital expenditure by hyperscalers and large enterprises racing to build and expand AI capabilities. Management has repeatedly emphasized that demand for advanced GPUs remains exceptionally strong, and the market largely views Nvidia as irreplaceable in the high-performance AI chip segment in the short to medium term.

Broader market conditions also remain supportive. Semiconductor stocks have held up well relative to the wider market, and Nvidia’s weight in major indices means that passive flows continue to provide a structural bid. That said, valuation remains elevated, making the stock sensitive to any disappointment in earnings guidance or signs of slowing AI investment.

Price scenarios and short-term forecast

Looking ahead, Nvidia’s short-term price direction will likely be driven by a combination of earnings expectations, AI spending commentary, and overall risk sentiment in US equities. In a bullish scenario, a sustained move above $200 followed by a breakout through $212 could open the door to a rally toward $235–$240 in the coming weeks, particularly if management reinforces confidence in data center revenue growth.

In a base-case scenario, Nvidia may continue to consolidate between $180 support and $212 resistance, digesting gains while investors await clearer signals from earnings and the macro environment. This range-bound behavior would still be constructive within the context of a longer-term uptrend.

Nvidia CEO Jensen Huang said the AI spending boom is a once-in-a-generation infrastructure buildout with seven to eight years still ahead, signaling that global investment in compute and data centers is far from peaking. He added that demand for Nvidia’s GPUs remains exceptionally strong, with supply constraints persisting as AI developers remain heavily dependent on the company’s latest chips to scale.

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