Morgan Stanley says tariff fears receded, but tariff impact on Nvidia ‘not over’

Morgan Stanley notes tariff fears may have receded, but adds that “this is not over.” The firm’s view is that the microeconomic impacts for Nvidia (NVDA) are “fairly minimal,” particularly because near term demand remains strong and is already being mitigated. However, the risk remains of macro deterioration impacting investment financing as the 10% tariff is still in effect, and could still climb higher in 90 days, the analyst noted. While semis are exempt from the reciprocal tariffs, the “challenges imposed by tariffs are still daunting,” adds the analyst, who keeps an Overweight rating and $162 price target on Nvidia shares.