Nvidia stock lifts 3.3% as market cap hits $5T, cementing AI supremacy

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Nvidia stock lifts

Highlights

- Nvidia reached a $5 trillion market cap, becoming the first company in history to do so.

- The stock rose 3.3% on strong AI-driven momentum and new global chip supply deals.

- CEO Jensen Huang’s aggressive expansion and investor optimism continue to position Nvidia at the center of the AI boom.

From a technical standpoint, NVDA remains well above its 50-day moving average, currently around $189, and significantly higher than its 200-day MA, which is below $150. These indicators confirm strong bullish sentiment in both short- and long-term perspectives. The stock has cleared previous resistance levels around $200, and now eyes the $220–230 zone as the next barrier. Should momentum continue, a test of $250 becomes plausible by year-end.

Support levels are firm around $180–190, where consolidation occurred in previous months. This level should act as a buffer in case of a market-wide correction or a pause in Nvidia’s current rally. Volume indicators also point toward increased institutional interest, with several high-volume accumulation days recorded recently. RSI (Relative Strength Index) hovers near 70, indicating the stock is approaching overbought territory — not unusual during parabolic rallies, but worth monitoring for potential short-term corrections.

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

In sum, Nvidia maintains strong technical structure with clear bullish momentum, supported by moving averages and rising volume. The only technical caution lies in its elevated RSI, suggesting that any negative catalyst could trigger a brief pullback. However, the steady breakout above previous resistance levels indicates that buyers remain firmly in control for now.

New milestone driven by global chip deals

Nvidia has become the first company in history to reach a $5 trillion market capitalization. The milestone comes just four months after Nvidia crossed the $4 trillion threshold, underscoring the pace and scale of investor optimism around artificial intelligence. This latest rally is being fueled by a wave of strategic chip supply deals inked by CEO Jensen Huang, including partnerships with Nokia, Samsung Electronics, and Hyundai Motor Group, positioning Nvidia as the key infrastructure supplier for global AI integration.

With a 54% gain in 2025 to date, Nvidia is now responsible for nearly 20% of the S&P 500 Index’s total performance this year. Its influence on equity markets is unprecedented — the stock now holds a 9% weight in the S&P 500, the highest for any single company, outpacing tech giants like Microsoft and Apple, each valued around $4 trillion. Bloomberg data reveals Nvidia’s valuation now exceeds the combined stock markets of the Netherlands, Spain, UAE, Italy, and Poland, placing it just behind the top five national exchanges globally. The company’s scale has become a macroeconomic factor in itself, increasingly sensitive to geopolitical developments and policy shifts, such as ongoing U.S.-China tech negotiations.

CEO Jensen Huang remains vocal and confident about Nvidia’s central role in the AI revolution. At a recent event, he dismissed concerns about an AI bubble and revealed that Nvidia’s next-generation chips could generate $500 billion in revenue, citing explosive demand. He also announced a new architecture designed to connect quantum computers to Nvidia’s AI processors — a move that could further entrench the company in future computing paradigms.

Range-bound consolidation or breakout ahead

Assuming Nvidia continues executing at current levels, a base-case scenario suggests the stock will move toward the $230–240 range within the next 3 to 6 months. This assumes continued demand for AI chips and no material disruption from China regulations. At this range, Nvidia would inch closer to a $5 trillion market cap — a psychological milestone that could drive further retail and institutional inflows.

In a bullish scenario, Nvidia could break through $250 and rally toward $270–280 in 2025. This would likely require another earnings beat, upside revenue guidance, or new strategic wins such as expanded partnerships or breakthroughs in AI chip development. A significant catalyst — like a new U.S. government AI infrastructure deal — could also serve as the trigger.

Nvidia shares hit record highs after President Trump said he will discuss Blackwell AI chip exports with China’s Xi Jinping this week. His comments raised investor hopes for a potential policy shift that could reopen a multibillion-dollar revenue stream for Nvidia.

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