Morgan Stanley said Nvidia remains at the forefront of artificial intelligence innovation and has new opportunities to gain market share. Analyst Joseph Moore reiterated his overweight rating on the chipmaker and said meetings with Nvidia’s CEO and other management reinforced the company’s view that it is the top choice in the semiconductor space. Morgan Stanley hosted a three-day non-deal roadshow for the company this week. “We remain very bullish on the long-term outlook, but given the rebound in stocks, short-term upside will raise the profitability bar somewhat,” Moore said in a note to clients on Thursday. His $150 price target implies that the Potential upside for the stock is about 13.1%, and the stock has soared nearly 167% this year. He said: “This is still a special situation, artificial intelligence is the most important technology trend, and NVIDIA is undoubtedly the biggest beneficiary of these investments.” The analyst said that long-term confidence in NVIDIA’s growth remains high. Management highlighted evolving opportunities for generative artificial intelligence reasoning that will expand exponentially and involve “long-term thinking” — or computationally intensive inferential interactions. Moore explained that these tasks will require a “richer hardware mix,” which will provide Nvidia with new avenues for growth. “NVIDIA’s upcoming rack-scale products are the best solution,” Moore said. He added: “The long-term vision is that deep thinking will enable every company in the world to employ large numbers of ‘digital AI workers’ capable of performing challenging tasks.” Moore said Nvidia’s Blackwell system NVL36/72 is the answer to these The best solution to the challenge, as he believes they provide more powerful processors for the AI market, and the GB200 systems are probably the most important innovation as they have a “full rack” approach. Under this approach, Nvidia enables racks of 36 or 72 GPUs to communicate with other graphics processing units simultaneously, increasing the ability to treat the entire rack as a large system. “We still believe NVIDIA is likely to really gain share in AI processors in 2025, as the largest users of custom chips will see sharp growth in NVIDIA solutions next year,” Moore said. The analyst also believes the launch of Blackwell will Plans are underway, with orders booked within approximately 12 months, driving strong short-term demand for Nvidia’s Hopper GPU architecture. “In the short term, Blackwell’s capacity growth appears to be quite strong, there are no major changes to the roadmap, and every indication is that the business remains strong and the outlook is very high,” Moore said. NVDA YTD Nvidia stock performance this year. Even as Morgan Stanley doubles down on Nvidia, the company’s recent growth story is still surrounded by some skepticism. Citi analyst Atif Malik maintained a buy rating on the artificial intelligence darling but said he expects Nvidia’s margins to bottom out early next year as its Blackwell platform takes time to fully ramp up. He said the stock is likely to remain range-bound. Some analysts, including Fairlead Strategies’ Katie Stockton, also want to see Nvidia break above intraday highs around $140 before adding new investments. The stock closed slightly lower on Wednesday at $132.65, just below its June closing high of $135.58.
