Morgan Stanley Confirms Nvidia Buy Recommendation: Analysis of Reasons and Perspectives
Morgan Stanley has reaffirmed its buy recommendation for Nvidia despite current market challenges. Analyst Joseph Moore emphasizes the explosive growth potential, driven primarily by the company’s AI-related technological leadership.
Key Factors of the Recommendation
- AI Market Leadership: Nvidia’s GPUs remain indispensable for training and operating complex AI models, despite occasional concerns about more efficient alternatives like DeepSeek.
- Blackwell Chips: The next generation of graphics processors (Blackwell) is seen as a key growth driver, with expected revenue boosts from 2025/26 onwards.
- Demand Stability: The robust demand for high-performance computing solutions in cloud data centers and enterprises remains intact, which mitigates macroeconomic risks.
Stock Price Development vs. Analyst Assessments
The stock has lost about 18% of its value since the beginning of the year, yet Morgan Stanley maintains a price target of $162 (47% upside potential), while the industry average points to ~ $177 (~60% potential). This discrepancy between the price decline and analysts’ optimism underscores expectations of technological superiority in the AI sector.
Macroeconomic Risks in Context
Despite trade conflicts (export restrictions for China) and interest rate concerns, Morgan Stanley highlights that Nvidia’s business model is primarily driven by structural AI demand – a factor that overshadows short-term macro fluctuations. The bank also emphasizes the broad application diversity of the chips in areas like autonomous driving or industrial automation as an additional buffer.
For investors, it remains crucial that Nvidia not only provides hardware but has also established an ecosystem with platforms like CUDA that ensures long-term customer loyalty – a unique selling point in the semiconductor market.