Nvidia Rides Sector Tailwind as Melius Trims Target and Washington Scrutinizes Hugging Face Deal

Nvidia shares drew strength from a broad rebound across technology and AI names, with the stock climbing 2.4% in one session and 3.0% in another as buyers returned to the sector ahead of the US midterm elections. Neither Reuters nor AP pinned the advance on anything specific to the chipmaker — both outlets instead pointed to simultaneous gains at Broadcom, AMD and Micron. The takeaway for investors is straightforward: the lift came from the market backdrop, not from a fresh reassessment of Nvidia's own projects.

That distinction matters because the company's actual business news has been arriving on a separate track. Roughly a week before the rally, Nvidia and Oracle unveiled plans to scale Oracle Cloud Infrastructure superclusters to multi-gigawatt proportions using Vera-Rubin systems. Vera Rubin NVL72 and Vera CPUs are, according to the company, already generally available on the platform — a confirmed technical reality paired with a capacity expansion that remains a stated ambition rather than delivered revenue.

Meta Tie-Up Comes With a $3 Billion Cheque

A deepened partnership with Meta landed around the same time. Nvidia disclosed a $3 billion investment in Meta's share offering, while Meta intends to widen its use of Nvidia's compute and networking hardware for its Muse models and AI-agent infrastructure. As with the Oracle build-out, these are announced intentions, not reported sales.

Wall Street, meanwhile, has been adjusting its expectations. Ben Reitzes of Melius Research cut his price target on Monday to $315 from $420 while keeping his buy rating intact — a combination that pairs continued conviction with a markedly lower bar. The reduction is no sell signal, and it offers no explanation for the share-price move, which Reuters attributed to the sector environment.

Justice Department Queries on $12.93 Billion Deal

Competitive questions have entered the picture as well. Reuters reported Wednesday that the US Department of Justice has sought information on Nvidia's agreed $12.93 billion purchase of Hugging Face, examining potential effects on AI competition. According to the report, officials also asked about acquisitions, stakes, sales practices and customer relationships. Those are inquiries, not a ruling on the transaction.

The next hard data point is set for November 17, when Nvidia holds its conference call on third-quarter results for fiscal 2027 — a period that ended October 25. The company confirmed the date on Wednesday, and a written commentary from finance chief Colette Kress is expected to follow the earnings release. Until then, the line stays clean: the recent gains reflect a friendlier climate for AI heavyweights, while the quarterly update will supply the first scheduled look at how the business itself is performing.