Nvidia Stock Price Prediction: Could OpenAI Takeover Bid Spoil The Party?

Summary:
• Nvidia stock price has new volatility with Elon Musk's attempted hostile takeover of OpenAI likely to impact its performance.

Nvidia stock price has had a scintillating performance in recent days, gaining six trading sessions on the trot. However, US President Donald Trump hinted on Monday that he could impose a 100% tariff on Taiwan semiconductors, a move that is likely to bring headwinds to Nvidia. The company’s stock price was down by 1.33% in the premarket session on Tuesday to trade at $131.80 as investors reacted to Trump’s comments.

Taiwan is home to Nvidia’s largest chips supplier, Taiwan Semiconductor Manufacturing Company (TSMC). Therefore, imposing tariffs against chip imports could translate to more expensive products and reduce its profit margins. Given the US and Taiwan’s long-running geopolitical coorporation in light of China, Trump is likely to take a more measured approach to tariffs.

Imposing tariffs could also result in supply disruptions and potrntially open the patheway for competitor Chinese chips to claim a larger stake in the US market. Meanwhile, news of a hostile takeover bid of OpenAI by a consortium led by Elon Musk could inject fresh impetus into Nvidia stock price in the medium-term.

The Musk-led consortium has made a $97.4 billion bid to buy the foundation that owns ChatGPT owner, OpenAI. However, that is still substantially lower than the $157 billion valuation as per the AI company’s last funding round. Furthermore, OpenAI CEO, Sam Altman has already rebuffed the takeover bid. Nonethless, another attempt isn’t out of the question.

The OpenAI takeover could have repurcussions for Nvidia (NASDAQ: NVDA) as the former was recently selected to spearhead Stargate, a $500 billion venture set uo by President Donald Trump to expand AI infrastructure and utility in the United States. Musk is opposed to the project, and a takeover of OpenAI could interfere with Nvidia’s infrastructure role in the project.

Nvidia Stock Price Prediction

The momentum on Nvidia stock price favours the buyers to stay in control above the pivot mark at $131.20. The first barrier is likely to be at $133.65, but a stronger upward momentum will break above that level and potentially test $136.00.

On the downside, the momentum will favour the sellers if action goes below $131.20. The first support is likely to be at $129.65. In addition, the upside narrative will be invalid if the price breaks below that level. An extended control by the sellers could send the action lower and test $127.95.