TLDR
- Nvidia stock closed at $180-182 on October 22, 2025, near its record high of $195, with the company’s market capitalization reaching $4.4 trillion.
- Q2 FY2026 revenue jumped 56% year-over-year to $46.7 billion, with data-center GPU sales generating $41 billion or 88% of total revenue.
- Nvidia invested $2 billion in Elon Musk’s xAI $20 billion funding round structured around five-year GPU leases for the Colossus 2 data center.
- The company announced a $100 billion OpenAI partnership for GPU supercomputers and acquired a $5 billion stake in Intel for joint chip development.
- Analysts maintain buy ratings with price targets averaging $210-220, while the stock faces risks from its 50x forward P/E ratio and China trade restrictions.
Nvidia stock is hovering near record territory after announcing three massive AI partnerships. Shares traded between $180-182 on October 22, 2025.
The stock peaked at $195 earlier in October. NVDA has gained 58% year-to-date, crushing broader market returns.
Nvidia’s market cap now stands at approximately $4.4 trillion. This valuation makes it one of the world’s most valuable companies.
The chipmaker reported Q2 FY2026 revenue of $46.7 billion. Revenue climbed 56% compared to the same quarter last year.
Data-center GPU sales drove the results. This segment generated $41 billion, representing 88% of total revenue.
Profit margins remain exceptionally strong. Gross margins exceeded 72% while net margins topped 50%.
XAI Deal Structures Novel GPU Financing
Elon Musk’s xAI raised $20 billion to fund its Colossus 2 data center project. Nvidia committed $2 billion in equity to the funding round.
The financing includes $7.5 billion in equity and $12.5 billion in debt. A special-purpose vehicle will buy Nvidia GPUs and lease them to xAI over five years.
Nvidia stock rose 2.2% to $189.11 when the xAI deal was announced on October 8. The arrangement locks in GPU demand while providing investor returns through chip rentals.
CEO Jensen Huang called the company’s new Blackwell AI chip architecture “the AI platform the world has been waiting for.” Production is ramping up to meet what Huang described as “extraordinary” demand.
OpenAI and Intel Partnerships Expand Ecosystem
Nvidia struck a $100 billion partnership with OpenAI in late September. The agreement covers building at least 10 gigawatts of GPU computing power.
Nvidia will deploy millions of GPUs across OpenAI’s data centers. The partnership includes up to $100 billion in combined hardware investments and funding.
The company also invested $5 billion in longtime rival Intel. This purchase gives Nvidia roughly a 4% stake in Intel.
The two companies plan to co-develop PC and data center chips. Intel stock jumped 23% following the announcement.
Huang noted the Intel partnership supports U.S. efforts to strengthen domestic semiconductor manufacturing. Nvidia’s chips will still be manufactured by TSMC.
Analyst Outlook Remains Bullish Despite High Valuation
Over 90% of analysts rate Nvidia stock as a buy. The average 12-month price target sits around $210-220.
Some analysts project even higher targets. Cantor Fitzgerald set a $300 price target while HSBC established a street-high target of $320.
The stock trades at approximately 50x forward earnings. This premium valuation reflects high expectations for continued growth.
Analysts forecast revenue growth exceeding 50% for FY2025. Consensus estimates call for $16 billion in Q3 revenue when the company reports on November 19.
Recent volatility affected the stock after it peaked above $195. Rising interest rates triggered profit-taking that pushed shares down to $180 on October 14.
The stock has since recovered to the low-$180s. This rebound demonstrates continued investor confidence in AI infrastructure spending.
U.S.-China trade tensions represent a key risk factor. China accounts for 10-15% of Nvidia’s revenue, but export controls restrict advanced GPU sales.
CEO Jensen Huang will attend the APEC summit in South Korea from October 28-31. President Trump is scheduled to meet Chinese President Xi at the same event.
Competition is intensifying as AMD recently secured orders to supply AI chips to OpenAI. Oracle plans to deploy 50,000 AMD MI450 GPUs in its cloud infrastructure.
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