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Investing.com -- Nvidia is poised to post a breakout quarter as its next-generation Blackwell platform scales rapidly, according to Morgan Stanley, which said the market has “inflected for the better in the last 45 days” and that it expects “the strongest result we have seen in the last few quarters.”
The bank raised its price target for NVDA to $220 from $210 and reiterated its overweight rating.
Morgan Stanley analyst Joseph Moore said Nvidia’s share performance has been solid but has lagged other artificial intelligence names on a relative basis, in part because “ASIC, AMD growth potential has captured investors’ imaginations.”
Still, the firm argued that “Blackwell remains the AI chip of choice and Vera Rubin demand signals are VERY strong,” adding that competitor enthusiasm “reflects progress but also a very strong market.”
The analyst expects a decisive shift in the company’s momentum. “We expect something of a breakout quarter vs. recent trends,” Morgan Stanley wrote, noting that industry checks show “material acceleration” as Nvidia has resolved earlier rack-related issues and demand continues to surge.
They added that growth constraints now lie more in “complementary hardware (storage, memory, servers) and space/power” than with Nvidia’s own supply.
The Morgan Stanley analyst believes demand signals across customers and suppliers point to faster growth than consensus implies, particularly as Nvidia tends to report later in the quarter.
The firm also cited commentary from Jensen Huang, noting that the CEO “did indicate that our numbers for the next five quarters needed to come up in the range of $70-$80bn.”
While Morgan Stanley raised its estimates by $22 billion, it noted that the stock is “10% lower now than it was” after Huang’s remarks, underscoring what it sees as a disconnect between expectations for Nvidia and for the broader ecosystem.