Morgan Stanley Reaffirms Nvidia Overweight with $288 Target Price, Implies 36.5% Upside

According to Morgan Stanley semiconductor analyst Joseph Moore, the bank reaffirmed its Overweight rating on Nvidia (NVDA-US) with a $288 price target, implying 36.5% upside from Friday's close of $210.96. Moore outlined four growth engines to address market concerns about potential slowdown: AI laboratories (currently 20% of demand, with Nvidia's market share recovering to nearly 50%), hyperscale cloud providers (50% of current revenue, expanding via CPU products with Vera CPU projected to contribute $20 billion in the current fiscal year), sovereign AI projects, and emerging cloud providers plus enterprise customers. Morgan Stanley expects the latter two segments to potentially outpace others as geopolitical and infrastructure factors reshape AI buildout.

Nvidia's revenue grew 71% year-over-year to $253.5 billion, with the stock trading at a price-to-earnings growth ratio of just 0.28, which Morgan Stanley views as attractive relative to growth potential. The analyst recommended building positions with additional purchases at $190.