Nvidia (NASDAQ:NVDA) took the spotlight at GTC 2025, offering investors a sneak peek into its future endeavors and its perspective on the evolving AI landscape for the next few years.
Yet, those who anticipated this event to reignite the stock’s momentum were met with disappointment as the shares actually tilted into the red during the week.
This lack of fireworks, according to Morgan Stanley analyst Joseph Moore, may explain the tepid reaction, although that doesn’t mean there wasn’t plenty of good stuff to savor.
That can be put down to the lack of any huge surprises, says Morgan Stanley analyst Joseph Moore, although that doesn’t mean there wasn’t plenty of good stuff to savor.
“There wasn’t much in the way of newsbreaking headlines, but this was one of the more impressive GTCs that we have attended,” the 5-star analyst said. “CEO Jensen Huang was optimistic at CES, but somewhat hedged given early ramp challenges; he is currently not hedged.”
Moore believes Huang made a strong case for Nvidia’s “multiyear scaling” in training and inference, showcasing a technology roadmap poised to outpace ASIC and merchant competitors and tackle new demands in physical AI. While Moore thinks it would be prudent not to base any views solely on comments made by the management team, his discussions with industry players and customers reinforce the same outlook. Previously, Moore viewed the January – April period as a transitional phase, but the analyst no longer holds that stance and now anticipates a “very strong period for the next few quarters.”
“We understand the headwinds aren’t entirely coming from micro data points, amid macro concerns, export control concerns, and concerns about the sustainability of scaling out frontier models, but the company will have a very strong product cycle to offset those concerns,” Moore went on to say.
Moore highlighted that the optimism around the Blackwell ramp-up stages was “notable,” particularly as it contrasts with a market that appears to be “losing confidence.”
The company said it had delivered 3.6 million units of its Blackwell GPUs to the top four U.S. CSPs, excluding AI-focused companies and startups. But equally significant as the numbers, says Moore, is the reason Nvidia chose to make such an announcement. As anyone keeping a close watch on Nvidia will know, this is the first time the company has shared any information about datacenter units. To Moore, it is evident that the purpose of the announcement was to “refocus the narrative on the strength of the demand profile.”
Furthermore, Moore pinpointed “inference at scale” as the industry’s biggest challenge that will shape future growth. Despite massive investments, demand still outpaces supply – highlighted by GPU shortages even for ChatGPT, let alone broader AI adoption. Millions of users still rely on non-reasoning models, and enterprise AI remains largely untapped. “Nvidia made a compelling case as to why efficiencies that have made the market skittish in recent weeks should drive higher demand over time,” says Moore, who also noted that Nvidia made a “strong case” for programmable solutions over ASICs.
So, what does that all mean for investors? Nvidia remains a Top Pick for Moore, who assigns the stock an Overweight (i.e., Buy) rating with a $162 price target. Should this target be met, investors could see returns of ~38% a year from now. (To watch Moore’s track record, click here)
Nvidia retains strong support from the rest of the Street, too; based on 39 Buys vs. 3 Holds, the analyst consensus rates the stock a Strong Buy. Going by the $176.54 average target, a year from now, shares will be changing hands for a 50% premium. (See NVDA stock forecast)
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Disclaimer: The opinions expressed in this article are solely those of the featured analyst. The content is intended to be used for informational purposes only. It is very important to do your own analysis before making any investment.