Nvidia shares faced a decline in early trading on Tuesday, following a significant one-day rise that marked the largest percentage gain since July. The surge was prompted by the announcement that Nvidia plans to invest up to $100 billion in OpenAI. This investment involves Nvidia providing OpenAI with its next-generation Vera Rubin platform, enabling the ChatGPT developer to create data centers and other AI infrastructure with at least 10 gigawatts of capacity. The specifics of the partnership are set to be finalized in the upcoming weeks.
Despite the positive momentum, Nvidia’s stock dipped approximately 2%, trading around $180, after experiencing a nearly 4% increase on Monday. This decline comes after the stock has recorded a remarkable 37% gain in 2025, significantly outperforming the broader market during the same timeframe. The surge can be attributed to substantial investments from major tech giants and sovereign customers seeking to enhance their AI capabilities through Nvidia’s products.
Taking a closer look at Nvidia’s technical chart reveals important signals for investors. The stock recently broke out from a symmetrical triangle pattern, a technical formation that suggests a continuation of the upward trend established in previous months. This breakout occurred alongside rising trading volume, indicating a strong conviction among larger market players. The relative strength index has also entered bullish territory, reinforcing the notion of strengthening momentum.
Investors are keen to note two bullish price targets based on the technical analysis. The initial price target, derived from the measured move technique, predicts a rise to approximately $207.64—around 13% above Monday’s closing value of $179. This target utilizes the percentage change between the triangle’s trendlines added to the top of the pattern.
For a longer-term perspective, bars pattern analysis suggests an ambitious price target of around $255, signaling nearly 40% upside potential from the latest closing price. This analysis incorporates recent upward trends observed from May through August.
As for support levels, investors should keep an eye on the $165 level during any future pullbacks, as this area could provide crucial support near a trendline established since early July. Should the stock experience a more significant decline, a retest of the support level around $150 may occur. This level coincides with previous peaks noted in Nvidia’s chart from late last year to early this year, possibly presenting buy-and-hold opportunities for strategic investors.
Overall, the outlook for Nvidia remains dynamic, driven by robust performance indicators and significant partnerships in the AI sector, maintaining keen interest from investors and market analysts alike.
