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Morgan Stanley raised its price target on Nvidia (NASDAQ: ) from $603 to $750 per share with an Overweight rating. The adjustment was reported on Wednesday, highlighting the continued rise in demand for artificial intelligence.
Analysts at Morgan Stanley indicated that their rating reflects a strong near-term financial outlook for NVIDIA. They believe that concerns regarding side effects do not account for the overall positive trend.
„The company's near-term growth is exceptionally strong,” say analysts. „Since late 2023, NVIDIA stock has successfully weathered several concerns; we expect it to continue to deliver impressive near-term financial performance.”
„There are a number of indicators for the near term, some of which are perceived as negative, but suggest better financial performance for NVIDIA over the next two to three fiscal quarters,” they added.
Morgan Stanley noted that availability of graphics processing unit (GPU) cloud services is currently limited, consistent with developer reports of long wait times for training AI models. Despite mixed signals from the supply chain, analysts see significant potential for financial results that beat broader market expectations.
Even with interest in alternative technologies, analysts are optimistic about Nvidia's position in the market. They note that the transition to the new B100 chip is currently the main factor affecting the market as it affects the availability of the upcoming H100 chip and the competitive landscape.
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