Shares of Nvidia (NVDA) rose more than 2% on Wednesday after top-rated Morgan Stanley analyst Joseph Moore raised his price target from $170 to $200. Overall, Moore reaffirmed his bullish outlook on chip stocks, pointing to “exceptional” AI demand from hyperscalers and leading internet firms.
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Morgan Stanley Sees Upside in Nvidia
Morgan Stanley’s Moore and his team remain optimistic about Nvidia’s growth potential. Meanwhile, the new target reflects a price-to-earnings multiple of 33 times its projected 2026 earnings. He emphasized his confidence in Nvidia’s AI chip, Blackwell, noting that demand for AI tokens is growing faster than the company can supply, underscoring strong long-term prospects.
He further noted that supply constraints are expected to ease in the second half of the year, which could lead to earnings per share (EPS) revisions.
Morgan Stanley Boosts Outlook on Chip Stocks
Along with Nvidia, Moore lifted his price target for other chip stocks. He raised Broadcom (AVGO) from $270 to $338, Astera Labs (ALAB) from $99 to $125, Marvell Technology (MRVL) from $73 to $80, and Advanced Micro Devices (AMD) from $121 to $185. Notably, Moore described Broadcom as “the most uncontroversial of the AI names,” highlighting its large market opportunity and long-term growth potential.
Morgan Stanley also noted that while AMD plays a relatively smaller role in AI, a rebound in demand for its MI308 chip in China and improving visibility in the PC market support a higher valuation.
What Is the Target Price of Nvidia Stock?
According to TipRanks, NVDA stock has a Strong Buy consensus rating based on 34 Buys, three Holds, and one Sell assigned in the last three months. At $185.8, the Nvidia share price target implies a 3.6% upside potential.
