San Francisco, CA – According to Morgan Stanley, the future looks bright for Nvidia as the demand for artificial intelligence processors continues to grow. The Wall Street investment bank has raised its price target for the dominant AI chipmaker to $750 from $603 and has maintained an overweight investment rating ahead of the company’s upcoming quarterly earnings release set for Feb. 21. This new price target suggests a potential 10% upside from Nvidia’s current levels, as the chipmaker has seen significant growth in the past year.
Despite Nvidia’s surge in the past 12 months, some investors have expressed concerns about whether the company’s earnings will be able to support such a rally, particularly in light of reports of order cuts late last year. However, Morgan Stanley analyst Joseph Moore remains optimistic about the near-term outlook for Nvidia, citing the continued surge in AI demand. Moore also noted that the stock is trading at a relatively low price-to-earnings ratio compared to previous years.
From a longer-term perspective, Moore is more cautious about his 2025 estimates, suggesting that there may be a plateau in that year. He also mentioned the potential consolidation of large language model projects currently in development for the following year. However, Moore expressed confidence in Nvidia’s competitive position in the chips market and its ability to navigate the evolving landscape.
Overall, Morgan Stanley’s positive outlook for Nvidia signifies the ongoing potential for growth in the AI processor market, despite some concerns from investors about the sustainability of the company’s recent rally. With the anticipation of the quarterly earnings release, all eyes will be on Nvidia as investors wait to see if the company can deliver on its promising near-term prospects.