Nvidia stock stabilizes at $178 as Evercore raises price target

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Nvidia stock stabilizes

Highlights

- Nvidia is trading near record highs, with strong technical momentum and support around $160.

- Evercore analyst Mark Lipacis raised his price target to $225 after discussions with Nvidia’s CFO, citing underestimated AI demand and the strategic importance of NVLink.

- While the $100B OpenAI deal signals long-term growth, analysts remain split over execution risks and China-related headwinds.

With a 52-week range of $86.62 to $184.55, the current level places Nvidia near the top end of its trading channel. The Relative Strength Index (RSI) is hovering near 68, approaching overbought territory, signaling momentum strength but also the potential for a short-term cooling-off period. Trading volume has remained elevated, indicating strong institutional interest, though recent candlestick patterns suggest hesitation near resistance. A failure to break decisively above $185 could trigger a short-term pullback toward key support levels.

Support for Nvidia is visible in the $150–$160 range, a level that coincides with its 50-day moving average and previous breakout zone. On the upside, the $184–185 zone remains a stiff resistance band, as the stock has struggled to hold above this level on previous attempts. If this ceiling is breached with volume confirmation, the next psychological target could lie near the $200 mark. Until then, price action is likely to remain range-bound as traders await a clear directional catalyst.

Nvidia stock price dynamics (July 2025 - September 2025). Source: TradingView

Nvidia’s valuation remains rich with a trailing P/E ratio of 50.8x and a forward P/E of 39.7x. The stock is priced for aggressive growth, but the fundamentals offer some justification: profit margins above 52%, return on equity over 90%, and a debt-to-equity ratio under 0.15. Analysts continue to view Nvidia as the market leader in AI infrastructure, and the current price action reflects bullish conviction, although risk of profit-taking remains elevated. These metrics highlight Nvidia’s exceptional capital efficiency and its ability to scale revenue with minimal balance sheet strain.

Wall Street split on Nvidia’s $100B OpenAI infrastructure push

Wall Street remains divided on Nvidia’s aggressive $100 billion investment tied to its deepening collaboration with OpenAI. Following new details from company leadership, sentiment has split between those who view the deal as a bold entrenchment of Nvidia’s dominance in AI infrastructure, and others who see execution risks and potential overreach.

Evercore analyst Mark Lipacis, after speaking directly with Nvidia’s CFO, reaffirmed his bullish stance, emphasizing that Nvidia is not only the hardware leader but also the "AI ecosystem of choice" due to its CUDA software stack and proprietary connectivity technology, NVLink. Lipacis believes NVLink is on track to become an industry standard, helping Nvidia secure long-term infrastructure contracts with partners like OpenAI. He raised his price target on NVDA from $214 to $225 and increased his 2026 revenue and EPS estimates by 2%, while noting even these numbers may prove conservative if demand accelerates.

A key takeaway from the updated commentary is that OpenAI may have underestimated its compute needs and is now racing to scale capacity before it becomes a bottleneck. The deal reportedly includes a commitment for at least 10 gigawatts of AI infrastructure, with Nvidia's management suggesting that the addressable market per gigawatt could range from $30 billion to $40 billion—implying a multi-trillion-dollar opportunity if fully realized. Despite the upside potential, some analysts remain cautious, citing execution complexity and geopolitical risks as reasons to temper near-term expectations.

Holding above $170 keeps the bull case intact

Nvidia’s short-term price path depends on two near-term drivers: market reaction to the OpenAI infrastructure deal and further developments related to U.S.–China tech trade tensions. Assuming the OpenAI deployment proceeds without major delays and macro sentiment remains risk-on, Nvidia could break above $185 and push toward $195–$205 over the next two to three months. A strong earnings report or upward guidance revision could further accelerate this upside scenario.

However, if market concerns over the deal structure intensify or geopolitical pressures escalate, NVDA may enter a consolidation phase, with price likely drifting between $160 and $175. The 50-day moving average and prior support levels around $162 should act as a technical floor in this scenario. In such a case, investors may rotate capital into less volatile tech names until clarity returns.

Barclays raised its price target on Nvidia to $240, citing strong demand for AI hardware, dominant GPU market share, and sustained pricing power through 2025. The firm highlighted Nvidia’s strategic role with hyperscalers and expects the upcoming B100 chip to drive the next wave of growth.

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