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Investing.com - Morgan Stanley has maintained its bullish stance on Nvidia (NASDAQ:NVDA) and its semiconductor supply chain in Asia ahead of the company’s upcoming earnings report. The company, which has achieved an impressive 86% revenue growth over the last twelve months, maintains a "GREAT" overall financial health score according to InvestingPro analysis.
The investment bank’s analysts project October revenue of $52.5 billion for Nvidia, noting there could be potential upside from that figure. Morgan Stanley acknowledged that some sell-side estimates reach as high as $55 billion, which they consider "achievable but not certain." With a current market capitalization of $4.4 trillion and robust gross profit margins of 70%, Nvidia appears to be trading above its Fair Value according to InvestingPro calculations, which offer 20+ additional key insights about the company’s performance.
The firm still recommends the stock at current levels due to expected ramp-up over the next 12 months, while anticipating Nvidia management will take a conservative approach regarding supply-side factors and China variables. China remains a significant variable in the guidance, with uncertainty surrounding future licensing despite a few licenses having been granted.
Recent market concerns have emerged about potential Chinese government actions to block domestic customers from purchasing American chips, along with reports that Nvidia might slow production. Nvidia’s only comment on production adjustments was that "we constantly manage our supply chain to address market conditions."
For U.S. semiconductors, Morgan Stanley maintains an Overweight rating on Nvidia, Broadcom, and Astera Labs, while in Asia, the firm is Overweight on TSMC, Samsung, Aspeed, Alchip, and MediaTek.
In other recent news, Nvidia has announced the general availability of its Jetson AGX Thor developer kit and production modules, designed to enhance robotics applications across various industries. These new robotics computers offer significant improvements in AI computing power and energy efficiency compared to their predecessors. Additionally, Cantor Fitzgerald has reiterated its Overweight rating on Nvidia, citing robust growth in artificial intelligence infrastructure spending, particularly by major tech companies like Microsoft and Google. In a related development, Baird has raised its price target for Nvidia to $225, highlighting strong momentum in GB200 shipments. Furthermore, global investment funds have shifted focus towards the semiconductor sector, purchasing $27.2 billion in shares, reflecting renewed interest in AI-related themes. Meanwhile, Gene Munster from Deepwater Asset Management suggests that Wall Street’s growth estimates for Nvidia in 2026 might be conservative, expecting analysts to revise their outlook upward. These developments indicate a dynamic period for Nvidia, with significant interest and investments in its technology and future growth potential.
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