Nvidia (NVDA) Surges 0.88% Extending Six-Day Rally Driven by OpenAI Partnership and AI Expansion

Nvidia (NVDA) surged 0.88% on Tuesday, extending its winning streak to six consecutive days with a cumulative gain of 6.74% over the period. The stock reached an intraday high of 2.03% above its opening price, marking its highest level since October 2025. This momentum reflects sustained investor confidence in the AI chipmaker's market leadership and strategic positioning.

The stock's performance is underpinned by Nvidia's $100 billion investment in OpenAI, which secures $350 billion in chip sales tied to OpenAI’s $1 trillion data center infrastructure. While the partnership ensures recurring demand for its GPUs, analysts have raised concerns about circular financing risks, drawing parallels to historical tech sector challenges. Despite these debates, the deal is projected to generate $400–$500 billion in long-term revenue for Nvidia, reinforcing its dominance in AI hardware.

Product innovation continues to drive growth, with the launch of the Rubin CPX GPU for generative video and the Blackwell RTX 5080-class SuperPOD for cloud gaming. Strategic expansions in the UK, including collaborations with CoreWeave and Microsoft, further solidify Nvidia’s role in global AI infrastructure. Q2 2026 revenue hit $46.7 billion, a 56% year-over-year increase, driven by strong Blackwell Data Center sales.

Macroeconomic factors also support the rally. The Federal Reserve’s 25-basis-point rate cut in September 2025 has heightened demand for high-growth tech stocks. Analysts at TD Cowen and UBS maintain "Buy" ratings, citing AI adoption tailwinds. However, mixed signals persist: Citi lowered its price target to $200, and CEO Jen Hsun Huang’s recent share sales have sparked questions about insider sentiment.

Regulatory risks and margin pressures remain key challenges. The OpenAI deal involves 71% cash and 29% stock payments, which may compress margins compared to traditional sales. Geopolitical uncertainties, particularly U.S. export debates over Chinese chip sales, add complexity to Nvidia’s growth trajectory. Nevertheless, its forward-looking strategy in quantum computing and robotics, including partnerships with PsiQuantum and Honeywell, highlights its commitment to long-term innovation.

While Nvidia’s rally is fueled by technological leadership and macroeconomic tailwinds, sustainability hinges on navigating financing risks and regulatory hurdles. The stock’s ability to maintain its edge in AI infrastructure will determine whether its current trajectory continues or faces corrections amid evolving market dynamics.