Morgan Stanley has announced that NVIDIA (NVDA, Financial) is gearing up to launch its Blackwell series GPUs, projecting significant production growth. The firm reaffirmed its "overweight" rating and maintained a price target of $150 for the tech giant.
Analyst Joseph Moore, after meeting with NVIDIA's management team, including CEO Jensen Huang, reported to clients that the company's product roadmap remains steady, with clear signs of robust business operations and promising future prospects.
Moore highlighted that NVIDIA is expected to gain more market share in artificial intelligence processors by 2025, noting anticipated significant growth in custom chip solutions next year. Insights from NVIDIA reinforced these expectations, emphasizing strong business momentum.
NVIDIA's management addressed previous concerns over initial production delays of the Blackwell series, which caused concern in the summer. Though the first version was operational, production faced issues due to post-packaging problems, exacerbated by shortages of wafer substrates and HBM3e. However, these issues have been resolved, and NVIDIA is optimistic about generating billions in revenue from Blackwell in the upcoming January quarter.
Crucially, NVIDIA assured there are no supply issues with HBM3e and expressed high confidence in qualifying Samsung as a third supplier, enhancing their supply chain robustness.
