Nvidia stock price target raised to $210 from $206 at Morgan Stanley

Investing.com - Morgan Stanley raised its price target on NVIDIA (NASDAQ:NVDA) to $210.00 from $206.00 on Thursday, while maintaining an Overweight rating on the semiconductor giant. The company, currently valued at $4.43 trillion, trades at a P/E ratio of 57.8x, reflecting its premium position in the market. According to InvestingPro analysis, NVIDIA is trading above its Fair Value.

The price target adjustment comes as NVIDIA recently guided for $7 billion in incremental quarterly revenue, marking the first time a company has projected such substantial sequential dollar growth without including China sales.

Morgan Stanley noted that NVIDIA’s guidance represents an undershipment of true demand, with compute shortages remaining so intense that customers are still purchasing three-year-old Hopper GPUs to meet their needs.

The firm acknowledged that investors had set higher expectations ahead of NVIDIA’s recent earnings report, partly due to supply chain data points and anticipated China contributions.

Morgan Stanley indicated that including the low end of potential H20 shipments could have pushed guidance to $56 billion, representing approximately 60% year-over-year growth.

In other recent news, Nvidia’s earnings results have been a focal point for analysts, with mixed reactions. The company reported a mild earnings beat, supported by strong performance in its Gaming segment, though its guidance fell short of the anticipated $55 billion. KeyBanc raised its price target for Nvidia to $230, citing strong guidance, despite data center revenue missing expectations. TD Cowen maintained its Buy rating on Nvidia, noting "lackluster" results by the company’s recent standards. Jefferies raised its price target to $205, highlighting Nvidia’s October guidance and the potential addition of $2-5 billion in revenue from China licenses. Mizuho reiterated its Outperform rating with a $205 price target, emphasizing Nvidia’s dominant market share in AI training and inference chips. Truist Securities also increased its price target to $228, noting AI growth despite sales results being slightly below expectations. These developments reflect the varied analyst perspectives on Nvidia’s recent performance and future potential.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.