Nvidia (NVDA) Stock: AI Partnerships Drive Shares Near Record Highs with $120B in New Deals

TLDR

• Nvidia stock trades around $180-182 as of October 22, 2025, approaching its all-time high of $195 with a market cap of roughly $4.4 trillion and up 58% year-to-date.
• The company reported Q2 FY2026 revenue of $46.7 billion, up 56% year-over-year, with $41 billion coming from data-center GPUs representing 88% of total sales.
• Nvidia committed $2 billion in equity to Elon Musk’s xAI $20 billion funding round to finance GPU purchases through a lease structure spanning five years.
• The chipmaker struck a $100 billion partnership with OpenAI to build GPU supercomputers and took a $5 billion stake in Intel for a joint chip venture.
• Over 90% of analysts rate NVDA a buy with price targets averaging $210-220, though the stock trades at a 50x forward P/E ratio and faces risks from U.S.-China trade tensions.

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Nvidia shares are trading near all-time highs following a series of major AI partnerships. The company’s stock reached $180-182 on October 22, 2025.

NVIDIA Corporation, NVDA

NVDA sits just below its peak of $195 hit earlier in October. The chipmaker’s market cap stands at approximately $4.4 trillion.

The stock has climbed 58% year-to-date. This performance vastly outpaces the S&P 500.

Nvidia’s latest quarterly results showed revenue of $46.7 billion for Q2 FY2026. That represents a 56% increase from the prior year.

Data-center GPU sales accounted for $41 billion of that total. This segment makes up 88% of the company’s revenue.

Gross margins exceeded 72% while net margins topped 50%. These profitability levels are rare for a company at Nvidia’s scale.

Major Partnership Announcements Drive Momentum

Elon Musk’s xAI secured $20 billion in financing to build its Colossus 2 data center. Nvidia committed $2 billion in equity to this funding round.

The deal structure includes $7.5 billion in equity and $12.5 billion in debt. A special-purpose vehicle will purchase GPUs from Nvidia and lease them to xAI for five years.

Nvidia stock jumped 2.2% on October 8 when the xAI news broke. Shares closed at $189.11 that day.

The company also announced a $100 billion partnership with OpenAI in late September. This agreement covers building at least 10 gigawatts of GPU supercomputers.

Nvidia will deploy millions of GPUs in OpenAI’s data centers. The partnership represents up to $100 billion in combined hardware and funding commitments.

In another surprise move, Nvidia invested $5 billion in Intel for roughly a 4% stake. The companies plan to co-develop PC and data center chips.

Intel’s stock surged 23% following the announcement. Nvidia CEO Jensen Huang said the deal aligns with U.S. goals for domestic semiconductor production.

Analyst Targets Reflect Continued Optimism

More than 90% of analysts rate NVDA as a buy. Average 12-month price targets cluster around $210-220.

Some forecasts reach higher levels. Cantor Fitzgerald raised its target to $300 from $240.

HSBC set a street-high target of $320. These projections imply upside of 15% to 60% from current levels.

The stock trades at approximately 50x forward earnings. This valuation is well above sector averages.

Analysts project continued revenue growth exceeding 50% for FY2025. Consensus estimates call for $16 billion in Q3 revenue.

Nvidia will report Q3 earnings on November 19. The market expects another quarter of strong growth.

Recent volatility hit the stock after it peaked above $195 in early October. Rising interest rates and profit-taking pushed shares down to $180 on October 14.

The stock rebounded into the low-$180s by October 22. This resilience reflects investor confidence in the AI narrative.

U.S.-China trade tensions pose risks to Nvidia’s outlook. China accounts for 10-15% of the company’s revenue.

Export controls restrict sales of Nvidia’s most advanced GPUs to China. 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. Any changes to export policies could affect Nvidia’s sales.

Competition from AMD is growing as the rival chipmaker recently won orders to supply AI chips to OpenAI. Oracle plans to deploy 50,000 AMD MI450 GPUs in its cloud infrastructure.

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