Nvidia stock climbs above $182 as Foxconn boosts AI server outlook

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Nvidia stock climbs

Highlights

- Nvidia stock trades above $182 amid accelerating AI server demand, led by Foxconn's robust Q3 outlook.

- Institutional investors, including Soros and Appaloosa, have significantly increased their holdings, signaling strong confidence in Nvidia’s AI leadership.

- Regulatory pressure from new U.S.–China policies and potential delays in Rubin chip deployment could pose short-term risks.

From a technical standpoint, Nvidia’s current price sits near its 20-day moving average, a region that often acts as a magnet for price action during phases of indecision. While the broader uptrend remains intact, the stock is currently trading just below its July high of approximately $187.50, indicating near-term resistance. If Nvidia can decisively break above the $185 level, a test of the $190–$195 zone appears feasible.

Support levels are seen at $178, followed by a more critical level at $172, which coincides with the 50-day moving average. Momentum indicators like RSI and MACD are neutral-to-slightly bullish, suggesting that bulls retain control, albeit with caution. The low volatility range this week points to an accumulation phase ahead of key developments in the AI chip rollout cycle.

Nvidia stock price dynamics (June 2025 - August 2025). Source: TradingView

Volume trends also support the consolidation narrative. While Nvidia’s daily trading volume remains elevated—averaging above 120 million shares over the past week—it has not spiked significantly, which typically signals either breakout or breakdown conviction. Instead, steady volume coupled with narrow price action suggests that investors are positioning cautiously ahead of potential catalysts, such as updates on Rubin chip timelines or regulatory developments related to China.

Ai server demand surges, but policy and product risk linger

Investor enthusiasm has been buoyed by bullish developments out of Foxconn. The Taiwan-based tech giant, one of Nvidia’s key hardware partners, reported that AI servers now contribute 41% of its second-quarter revenue, surpassing smartphones for the first time. More significantly, Foxconn forecasts a 170% year-over-year increase in AI server revenue for Q3, with rack shipments expected to triple.

These trends highlight an accelerating demand environment for Nvidia’s data center GPUs and full-stack systems, including the GB200 and GB300 NVL72 platforms. Institutional sentiment has also turned notably bullish. Soros Fund Management expanded its Nvidia holdings by over 1,600% in Q2, while Appaloosa Management increased its stake by 483%, signaling growing confidence in Nvidia’s AI leadership and future earnings trajectory.

However, Nvidia faces growing policy-related headwinds. The U.S. government recently introduced a controversial policy requiring chipmakers like Nvidia and AMD to remit 15% of revenue from AI chip sales to China. This has sparked legal scrutiny and raises the possibility of declining margins or reduced Chinese demand in the near term.

Balanced risks with bullish bias toward $190

Nvidia’s current trading posture reflects a market balancing robust AI-driven fundamentals with mounting regulatory and operational risks. The bullish case remains credible: if Foxconn’s AI demand continues to expand and Nvidia can manage Rubin’s production challenges without significant delay, the stock could break above $185, setting a path toward $190–$195 in the next 2–4 weeks.

In a base-case scenario, where Rubin’s timeline slips modestly and regulatory concerns remain background noise, Nvidia is likely to trade within a $180–$185 range. This zone would serve as a consolidation area while investors await earnings updates and clearer visibility into product rollouts and Chinese policy impacts.

Nvidia’s Rubin AI chips are reportedly undergoing redesigns to better match AMD’s upcoming MI450, raising concerns about potential production delays into 2026. Such delays could threaten Nvidia’s competitive edge in the rapidly evolving AI chip market as rivals gain ground.

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