Morgan Stanley analysts have projected further potential gains for NVIDIA's stock (NVDA, Financial) as demand for its GPU chips continues to rise. After a three-day meeting in New York with NVIDIA's CEO Jensen Huang and CFO Colette Kress, analysts observed sustainable demand indicators that could propel NVIDIA's stock closer to, or even beyond, its historical highs.
Joseph Moore, a Morgan Stanley analyst, emphasized that every sign from the management suggests we are still in the early stages of a long-term AI investment cycle. Morgan Stanley maintains its "overweight" rating on NVIDIA stock with a price target of $150, indicating a potential 11.2% increase from its current level. Moore highlighted NVIDIA as the preferred choice in the semiconductor sector, noting its leading position in AI innovation and the opportunity to gain new market share.
Moore also discussed the next-generation Blackwell GPU chips, whose production is on schedule, with supplies for the next 12 months already sold out. Customers placing new orders may have to wait until late 2025 for delivery. This situation is expected to fuel strong short-term demand for NVIDIA's current Hopper architecture products.
Moore identified a new element in NVIDIA's narrative, where inference computing is starting to address more complex problems, requiring a more robust hardware portfolio. This development is considered beneficial for NVIDIA's GPU lineup, potentially spurring new growth paths and enhancing NVIDIA's leading position.
Further, CEO Jensen Huang conveyed to Morgan Stanley that the company anticipates significant growth in 2025, continuing into 2026, although this growth has not been quantified.
