TLDR
- Nvidia shares traded at $180-182 on October 22, 2025, just shy of the $195 all-time high reached earlier this month, with market cap at $4.4 trillion.
- The chipmaker posted Q2 FY2026 revenue of $46.7 billion, up 56% from last year, driven by $41 billion in data-center GPU sales accounting for 88% of revenue.
- Nvidia committed $2 billion to Elon Musk’s xAI $20 billion funding round, structured as a five-year GPU lease arrangement for the Colossus 2 facility.
- A $100 billion OpenAI partnership and $5 billion Intel investment round out $120 billion in new AI infrastructure deals announced recently.
- Wall Street analysts maintain overwhelmingly bullish ratings with average price targets of $210-220, though concerns exist about the 50x forward P/E valuation.
Nvidia stock continues trading near peak levels following several blockbuster AI partnership announcements. Shares closed between $180-182 on October 22, 2025.
The stock reached an all-time high of $195 in early October. NVDA has climbed 58% since the start of 2025.
The company’s market capitalization sits at roughly $4.4 trillion. This positions Nvidia among the world’s most valuable corporations.
Second quarter fiscal 2026 results showed revenue of $46.7 billion. This represents a 56% increase year-over-year.
Data-center GPU sales generated $41 billion of that total. This segment now accounts for 88% of Nvidia’s overall revenue.
The company maintains exceptional profitability. Gross margins topped 72% while net margins exceeded 50%.
Musk’s xAI Secures GPU Capacity Through Novel Deal
Elon Musk’s artificial intelligence startup xAI closed a $20 billion financing round. Nvidia invested $2 billion in equity as part of the deal.
The funding structure combines $7.5 billion in equity with $12.5 billion in debt. A special-purpose vehicle purchases GPUs from Nvidia and leases them to xAI over five years.
Shares jumped 2.2% to $189.11 on October 8 when the xAI news broke. The arrangement guarantees chip demand while creating returns for investors through equipment rentals.
This deal highlights Nvidia’s evolution beyond traditional chip sales. The company now actively finances AI infrastructure projects.
CEO Jensen Huang described the new Blackwell chip architecture as meeting “extraordinary” market demand. Production is accelerating to keep pace with orders.
Major Tech Alliances Cement Market Position
Nvidia announced a $100 billion partnership with OpenAI in September. The companies will build at least 10 gigawatts of GPU computing capacity.
Millions of Nvidia GPUs will power OpenAI’s data centers. The agreement includes up to $100 billion in hardware and funding commitments.
In a surprising move, Nvidia invested $5 billion in competitor Intel. This stake represents approximately 4% of Intel’s equity.
The partnership focuses on co-developing chips for PCs and data centers. Intel shares surged 23% after the announcement.
Huang emphasized the deal supports domestic semiconductor manufacturing goals. TSMC will continue producing Nvidia’s chips while Intel contributes additional capacity.
Wall Street Targets Reflect Optimism
More than 90% of analysts rate Nvidia stock as a buy. Average 12-month price targets range from $210-220.
Several firms project higher valuations. Cantor Fitzgerald raised its target to $300 while HSBC set a $320 price objective.
The stock currently trades at about 50x forward earnings. This premium reflects expectations for sustained growth.
Analysts expect revenue growth above 50% in fiscal 2025. Third quarter consensus estimates call for $16 billion when results arrive November 19.
Volatility has affected the stock recently. Shares dipped to $180 on October 14 as rising interest rates triggered profit-taking.
The stock recovered to current levels within days. This resilience demonstrates strong investor conviction in AI spending trends.
Geopolitical factors present downside risks. China represents 10-15% of Nvidia revenue but faces export restrictions on advanced GPUs.
CEO Jensen Huang plans to attend the APEC summit in South Korea October 28-31. President Trump will meet Chinese President Xi at the same event.
Any policy changes could impact Nvidia’s international sales. China recently launched an antitrust investigation into the company.
Competition from AMD is increasing. The rival chipmaker won recent orders from OpenAI and Oracle for AI chip deployments.
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