Morgan Stanley says ‘no big surprises’ from Nvidia’s Computex keynote

Morgan Stanley notes Nvidia (NVDA) made a handful of announcements during the Computex keynote. The firm notes that the most interesting was NVlink Fusion, a new variant of Nvidia’s interconnect technology that extends the capabilities for use with a broader ecosystem including custom ASICs and non-Nvidia CPUs. Morgan Stanley says that it frankly needs to spend more time to understand this strategy and the impact to the ecosystem, as clearly it can add growth to comm infrastructure revenues. Separately the company announced RTX PRO servers, a new offering targeted at the enterprise AI inference market. All in all, the firm believes there were “no big surprises here,” and argues that the path to a second half of the year re-acceleration is clear. Morgan Stanley has an Overweight rating on the shares with a price target of $160.