Catenaa, Thursday, August 07, 2025- Morgan Stanley raised its 12-month price target for Nvidia to $200 from $170, citing surging demand for its next-generation Blackwell AI chips and a strengthening position in global AI infrastructure.
Analyst Joseph Moore reaffirmed Nvidia as the firm’s top semiconductor pick, projecting accelerated earnings growth fueled by the rapid adoption of Blackwell GPUs in data centers and cloud platforms.
He said the chips’ performance leap and early sales momentum support an elevated valuation, applying a 33x earnings multiple to Nvidia’s 2026 estimates.
Blackwell GPUs, including the Ultra and B200 models, deliver up to 40x faster AI training and inference than previous-generation Hopper chips. Nvidia reported that Blackwell sales have already surpassed Hopper’s peak, while new H20 chips tailored for export to China offer additional upside as U.S. regulators allow controlled shipments.
Morgan Stanley’s note emphasized that despite near-term supply constraints, production is set to ramp in the second half of 2025, providing “convex earnings leverage” as demand remains well above available output.
Hyperscale cloud providers and enterprise clients continue to expand AI infrastructure spending, which analysts said could accelerate Nvidia’s market share and profitability through 2026.
Nvidia shares have surged on the AI wave, reinforced by export licenses to China and expanding partnerships with firms like CoreWeave and Dell. The stock’s upward momentum reflects Wall Street’s expectation that Nvidia will maintain dominance in the AI chip market despite intensifying global competition.
