Nvidia stock stabilizes at $183 as Jefferies reiterates buy rating

Traders Union
All News
Financial News
Nvidia stock stabilizes

Highlights

- Nvidia is holding above $183 after Jefferies reiterated its Buy rating, highlighting continued strength in AI infrastructure demand.

- Technical support is firm around the 50-day SMA at $179, with resistance near the 52-week high of $195.

- Momentum indicators suggest further upside is possible if buying pressure persists.

The 50-day SMA currently stands near $179.57, acting as immediate dynamic support, while the 200-day SMA at approximately $145.55 represents a much lower structural support level that underpins the broader bullish cycle. This alignment indicates strong trend confirmation, with short- and long-term momentum pointing upward. Notably, the widening gap between the two moving averages further signals bullish strength and reduced downside risk in the near term.

Recent trading action shows that NVDA bounced from the $176.24 intraday low and briefly touched $184.08, reflecting strong buying interest in the upper $170s and resistance near the recent swing high. This intraday reversal highlights the presence of active dip buyers who view sub-$180 levels as attractive reentry points. The candle structure for the day formed a bullish tail, indicating that sellers lost control despite early downward pressure.

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

Short-term support is defined in the $175–$180 region, coinciding with recent consolidation levels and the 50-day average. Holding this zone is critical for maintaining the upward momentum into the next earnings cycle. If breached decisively, it could trigger algorithmic selling and a fast drop toward the $165–$170 range. Resistance remains in focus at the 52-week high of $195.62, and a break above this level could trigger a fresh leg upward. Momentum indicators remain constructive, and institutional flows suggest accumulation rather than distribution.

AI demand drives analyst confidence despite elevated valuations

Jefferies recently reiterated its Buy rating on Nvidia, highlighting continued dominance in artificial intelligence infrastructure, data center expansion, and software innovation. According to their commentary, Nvidia’s unrivaled positioning in AI chips—especially its H100 and upcoming GH200 platforms—continues to attract hyperscalers and enterprise clients alike. Wall Street analysts maintain a consensus price target of $215, implying a 17% upside from current levels. The most bullish forecast stands at $389, suggesting over 100% potential gain if Nvidia continues to outperform in the AI and data center markets.

The bullish analyst outlook coincides with a broader macro backdrop that remains supportive of semiconductor stocks. Demand for AI computing, autonomous driving systems, and advanced GPUs is accelerating. In a strategic move underscoring its geopolitical significance, Nvidia recently confirmed plans to develop a China-specific AI chip designed to comply with updated U.S. export restrictions. The new chip, expected to launch later this quarter, will offer reduced computing power compared to Nvidia’s flagship H100, ensuring it falls below U.S. regulatory thresholds while still meeting the needs of Chinese cloud and enterprise customers.

Risks remain, however. Ongoing U.S. export restrictions to China could dampen demand for Nvidia’s high-performance chips. Moreover, macroeconomic uncertainty and high interest rates could trigger a risk-off sentiment, weighing on high-multiple tech names. Still, institutional support, including from Jefferies and other major Wall Street firms, underpins the stock’s premium standing in growth portfolios.

Room to test $195 with support at $175

In the short term, Nvidia is likely to continue trading in a bullish-to-neutral channel, with an upward bias toward its previous high. The most probable price scenario is a gradual climb toward $190–$195, especially if sentiment around AI adoption remains upbeat. The confirmation of major customer wins or positive earnings guidance could push the price beyond $195.62, opening the door toward $200–$205.

On the downside, failure to hold the $175–$180 support zone could lead to a retest of $165, with a more bearish case seeing shares fall back toward the $150–$155 level near the 200-day average. However, this would likely require a significant deterioration in either earnings outlook or macro conditions. Overall, the base case leans bullish, with Nvidia’s technical strength and industry leadership suggesting a year-end target around $190, with upside potential toward $200 if catalysts materialize.

Elon Musk’s xAI is reportedly working on a $20 billion lease-to-own deal to acquire Nvidia GPUs for its next-gen “Colossus” data center, using SPVs to structure the financing. Nvidia may contribute up to $2 billion in equity to support the arrangement over a five-year lease period.

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.