Key Takeaways:
Morgan Stanley maintained its overweight rating on Nvidia Corp. with a $288 price target, implying about 42% upside from the July 9 close.
"Morgan Stanley's latest report projects Nvidia's GB200 and GB300 NVL72 rack shipments will reach 70,000 to 80,000 units this year," Joseph Moore, analyst at Morgan Stanley, said. The firm kept Nvidia as its top semiconductor pick.
The $288 target, based on the $202.78 closing price on July 9, values Nvidia at a valuation roughly in line with the broader market and below computing chip peers including Advanced Micro Devices Inc., Broadcom Inc. and Intel Corp., according to the note. Moore's buy rating aligns with the consensus on Wall Street, where most analysts covering Nvidia rate the stock a buy.
The reaffirmation comes as Nvidia Chief Executive Officer Jensen Huang, speaking at a Morgan Stanley roadshow in California, denied rumors of a delay for the company's next-generation chips. The GB300 platform is expected to drive the next phase of growth for Nvidia, which has seen its market capitalization surge past $5 trillion on the back of surging demand for AI computing hardware.
The maintained rating shows Morgan Stanley views Nvidia's AI-driven growth story as intact despite growing competition from customers developing in-house chips. Nvidia shares traded higher Friday as investors looked past reports that one of its largest customers is stepping up development of its own AI processors. The company's data center segment, which accounts for the majority of revenue, continues to benefit from hyperscaler spending on AI infrastructure, with major cloud providers committing billions in capital expenditure for the year. Investors will watch for the company's next quarterly earnings report for updates on GB300 production timelines and data center revenue trends.
This article is for informational purposes only and does not constitute investment advice.
