Nvidia stock holds at $189 amid partnership with Cisco and Sharon AI

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Highlights

Nvidia stock is holding near $189 as investors react to its AI infrastructure partnership in Australia.
The company is collaborating with Cisco and Sharon AI to deploy Blackwell GPUs in a new AI factory.
The deal strengthens Nvidia’s position as a core provider of global enterprise AI infrastructure.

The 50-day moving average is positioned near $176, while the 200-day moving average stands around $142, confirming that the broader uptrend remains intact despite recent consolidation. Price action over the past two weeks shows Nvidia attempting to stabilize after failing to hold above the psychological $190 barrier. Immediate resistance is now clearly defined between $190 and $195. A sustained breakout above this zone would likely trigger momentum buying and open the path toward the $205–$210 region, which aligns with previous swing highs.

On the downside, initial support is located at $182, followed by stronger structural support near $175–$176, where the 50-day moving average converges with prior breakout levels. A deeper correction would target $165, though that scenario currently lacks technical confirmation.

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

Momentum indicators suggest mild consolidation rather than reversal. The Relative Strength Index is hovering near neutral territory around 55, indicating neither overbought nor oversold conditions. MACD remains in positive territory but shows flattening momentum, reflecting the ongoing pause in upside acceleration. Volume has slightly decreased compared to the strong rally seen earlier this quarter, suggesting investors are awaiting a fresh catalyst.

Australia AI factory strengthens Nvidia’s infrastructure leadership

The announcement that Cisco and Sharon AI are launching an AI factory in Australia powered by Nvidia Blackwell Ultra GPUs reinforces Nvidia’s dominance in the global AI infrastructure buildout. The facility will deploy 1,024 Nvidia Blackwell Ultra GPUs, integrated with Cisco’s secure networking architecture, aimed at providing sovereign AI computing capabilities within Australia.

This development is strategically important for several reasons. First, it highlights Nvidia’s continued penetration into national-level AI infrastructure projects, where governments and enterprises prioritize data sovereignty and secure compute environments. Second, it underscores Nvidia’s transition from purely a chip supplier to a foundational AI ecosystem provider, combining hardware, software, and networking integration.

The partnership also signals sustained global demand for high-performance computing clusters outside the United States. As countries accelerate AI adoption across healthcare, defense, finance, and research sectors, localized AI factories are becoming critical. Nvidia’s Blackwell architecture is positioned as the backbone of these facilities, reinforcing long-term demand visibility.

Breakout above $195 targets $210 in near term

In the short term, Nvidia’s price action hinges on whether buyers can push the stock convincingly above the $190–$195 resistance zone. A confirmed breakout with expanding volume would likely trigger algorithmic and momentum-driven buying, projecting a near-term target between $205 and $210 within the next four to six weeks.

Under a bullish scenario, continued positive AI-related announcements and stable broader market conditions could accelerate the move toward $220 by late Q1. The trend structure supports higher highs as long as the price remains above $175.

RBC Capital reiterated its Outperform rating on Nvidia with a $240 price target, expecting a 3%–4% earnings beat and higher forward guidance. The firm highlighted Nvidia’s $500 billion-plus backlog for 2025–2026 as a key driver of revenue visibility and sustained AI infrastructure demand.

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