Technical analysis by DEXWireNews about Symbol NVDAX: Buy recommendation (12/10/2025)

Chinese AI startup DeepSeek is reportedly building its next major artificial intelligence model using thousands of Nvidia (NASDAQ: NVDA) Blackwell-generation GPUs that were smuggled into China, according to a detailed investigation by The Information. These chips, among Nvidia’s most advanced AI accelerators, are restricted under U.S. export controls, making them unavailable to Chinese buyers through legal channels. The report highlights a sophisticated smuggling operation in which servers equipped with Blackwell chips were initially shipped to data centers in countries not affected by U.S. restrictions. The servers were then dismantled, and their components imported into China in pieces, bypassing regulatory scrutiny. Most Nvidia chips are produced in Taiwan and distributed globally through a network of intermediaries, creating gaps that can be exploited. For DeepSeek, access to the Blackwell architecture provides a significant performance advantage. It enables faster training times, larger models, and superior inference efficiency—critical factors in the global AI race. Despite Beijing’s aggressive support for domestic semiconductor advancement, Chinese-made AI chips still trail Nvidia’s top-tier performance, according to executives from Chinese AI companies. Nvidia, responding to the allegations, stated that it has not seen evidence of “phantom data centers” being constructed and dismantled to disguise smuggling routes, though the company emphasized that it investigates any credible tip it receives. Technical Analysis NVDA’s price action remains in a broad structural uptrend, despite recent volatility. The stock is currently trading near $185, just below its shorter-term moving average. A critical resistance zone lies around $212, marked by the previous swing high. A breakout above this level could resume the macro uptrend, potentially targeting new all-time highs. If price fails to reclaim momentum, downside support sits around $170, where significant demand previously pushed price higher. A deeper correction could revisit the $145 liquidity zone, aligning with historical consolidation. Overall, NVDA remains technically strong, but sensitive to geopolitical and regulatory headlines.