Nvidia Stock Rises as Investors Shrug Off AMD--OpenAI Chip Alliance

Oct 7 - Nvidia NVDA ticked slightly higher on Tuesday as investors appeared unfazed by a major partnership between Advanced Micro Devices AMD and OpenAI.

Shares in Nvidia gained 1% to around $186.8 on Tuesday's opening, recovering part of Monday's 1.1% pullback, while S&P 500 futures dipped about 0.1%.

Some traders saw the AMDOpenAI announcement as a possible long-term challenge to Nvidia's dominance in the AI chip market. Still, analysts say the company's position remains strong.

Raymond James analyst Ed Mills noted that upcoming talks between U.S. President Donald Trump and China's leader Xi Jinping at the APEC Summit could reshape restrictions on tech exports, potentially allowing Nvidia to sell its Blackwell GPUs in China again.

Nvidia CEO Jensen Huang previously warned that U.S. limits on AI chip sales to China could trim as much as $15 billion from annual revenue. Even so, fresh demand from new AI data-center projects could offset that loss. The Wall Street Journal reported that Elon Musk's xAI plans to spend about $18 billion to purchase roughly 300,000 Nvidia chips for its upcoming Memphis facility.

Year to date, Nvidia shares are up 38%, outpacing the S&P 500's 15% gain in 2025.