Nvidia stock steady at $185 with AMD-OpenAI deal seen as low risk

Traders Union
All News
Financial News
Nvidia stock consolidates

Highlights

- Nvidia remains the dominant AI chip supplier despite OpenAI’s expanded partnership with AMD, with analysts calling competitors “less proven.”

- Major firms like Goldman Sachs and Melius Research raised their price targets, citing strong demand and upside from new customer segments.

- The upcoming GTC conference on October 28 is viewed as a potential catalyst for further stock gains.

Nvidia’s current price action centers around a key technical inflection point. Shares recently cleared a flat-base breakout near $184.50, which had formed over several weeks. After peaking near $188.94 intraday, the stock pulled back modestly to $184.95 — essentially testing the breakout level from above. This is generally considered constructive, as breakouts are often followed by retests that allow market participants to reload positions.

From a moving averages perspective, NVDA remains bullishly aligned: the 21-day EMA is around $180.30, and the 50-day SMA sits near $174.20, both beneath the current price and sloping upward. The RSI is hovering in the 58–60 range, indicating neutral-to-bullish momentum without being overbought. Volume has ticked higher on up days, suggesting accumulation rather than distribution.

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

The MACD indicator remains in bullish territory, though it’s showing signs of flattening, which suggests a potential pause or sideways movement in the near term. However, with NVDA still trading above all key moving averages—including the 50-day SMA near $174 and the 100-day around $166—there is strong structural support below current levels. Unless Nvidia breaks below these moving averages with high volume, the technical picture favors continuation rather than reversal.

Nvidia retains lead as OpenAI expands chip sourcing

Despite OpenAI’s recent moves to diversify its chip suppliers, Nvidia remains the dominant force powering the AI revolution. Wall Street analysts continue to emphasize Nvidia’s entrenched position across nearly all major AI workloads. “Nvidia remains the incumbent everywhere,” noted Morgan Stanley’s Joseph Moore in a client note Tuesday, adding that alternative suppliers are “less proven” and still lack the ecosystem maturity Nvidia offers. While AMD and others are gaining traction, Nvidia’s full-stack solution—from hardware to CUDA software and networking—continues to provide unmatched performance and developer lock-in.

Investor confidence is reflected in a flurry of upward price target revisions. Goldman Sachs reiterated its Buy rating on Nvidia and raised its target to $210 from $200, citing a “strong runway of growth” among core hyperscaler clients and increasing upside from emerging enterprise customers. Meanwhile, Melius Research took a more aggressive stance, bumping its target to $275 and dismissing fears of an AI spending slowdown. Analyst Ben Reitzes noted that concerns about data center budget moderation in 2026 are overblown, as current investment cycles remain robust and front-loaded.

The next potential catalyst for Nvidia could be its upcoming GTC conference in Washington, D.C., scheduled for later this month. CEO Jensen Huang is set to deliver a keynote on October 28, which may include updates on next-generation hardware, new software partnerships, and government collaborations. These events have historically been inflection points for the stock, especially if Huang outlines a more expansive roadmap that extends Nvidia’s AI leadership into new verticals such as defense, healthcare, and sovereign AI infrastructure.

Key support levels and GTC as near-term catalyst

Nvidia’s short-term outlook hinges on whether it can maintain support above the $184 level. If shares continue to consolidate constructively above this zone, the next bullish target sits in the $210–225 range — a level aligned with prior Fibonacci extensions and psychological resistance. This scenario assumes continued AI demand growth and positive earnings momentum into Q3.

On the downside, a break below $180 could trigger a retest of the 50-day SMA near $174, with further support at $160–165 if bearish momentum accelerates. While a steep drawdown appears unlikely given current fundamentals, investor positioning and rising competition from AMD warrant close monitoring. Additionally, any disappointing news from Nvidia’s upcoming GTC conference on October 28 could serve as a near-term catalyst for profit-taking.

Nvidia’s recent share weakness followed news of AMD’s major chip deal with OpenAI, signaling a potential shift as OpenAI looks to diversify beyond Nvidia’s GPUs. While Nvidia remains dominant for now, the emergence of credible alternatives like AMD and custom Broadcom chips raises questions about its long-term competitive moat.

This material may contain third-party opinions, none of the data and information on this webpage constitutes investment advice according to our Disclaimer. While we adhere to strict Editorial Integrity, this post may contain references to products from our partners.