Morgan Stanley Raises Nvidia Price Target to $200 Amid "Exceptional" AI Demand

Nvidia's stock rose 2% after Morgan Stanley analyst Joseph Moore raised his price target from $170 to $200, citing "exceptional" AI demand from hyperscalers and internet firms. Moore also lifted targets for Broadcom, Astera Labs, Marvell Technology, and Advanced Micro Devices, citing strong long-term prospects for these chip stocks. Nvidia's AI chip, Blackwell, is in high demand and supply constraints are expected to ease in H2.

Nvidia's (Nasdaq: NVDA) stock experienced a 2% gain today following Morgan Stanley analyst Joseph Moore's upgrade of the company's price target from $170 to $200. The analyst cited "exceptional" AI demand from hyperscalers and internet firms, along with sustained demand for Nvidia's AI chip, Blackwell, as the primary drivers behind the increase [1].

Moore's optimism is shared by other analysts who have raised price targets for a basket of semiconductor stocks. Broadcom (NASDAQ: AVGO), Astera Labs, Marvell Technology (NASDAQ: MRVL), and Advanced Micro Devices (NASDAQ: AMD) have also seen their targets lifted, reflecting the long-term growth potential in the AI sector [2].

Nvidia's AI chip, Blackwell, has been in high demand, with supply constraints expected to ease in the second half of the year. The company has placed orders for 300,000 H20 chips from TSMC in response to strong Chinese demand, following the easing of US export restrictions [4].

Despite the positive outlook, Nvidia faces challenges in obtaining export licenses from the US government to ship the H20 chips. The company has been assured by authorities that these licenses will be granted soon, but a timeline for approval has not been specified.

In addition to the AI chip demand, Nvidia's executive, Jensen Huang, has emphasized China's uniqueness as a market, suggesting that the company is positioning itself to capitalize on the growing AI market in the region.

References:
[1] https://www.ainvest.com/news/nvidia-leads-charge-high-volume-ai-demand-surges-2507/
[2] https://finance.yahoo.com/news/chip-stocks-targets-raised-morgan-125057181.html
[4] https://m.economictimes.com/tech/technology/nvidia-orders-300000-h20-chips-from-tsmc-due-to-robust-china-demand-sources-say/articleshow/122964865.cms