Morgan Stanley Reiterates Nvidia as Top Pick with $166 Price Target, Sees 44.1% Revenue Growth in 2025

Morgan Stanley maintains Nvidia (NVDA) as a "Top Pick" with an Overweight rating and $166 price target. Despite near-term concerns, the firm believes demand for Nvidia's upcoming Blackwell GPU will dominate the narrative by H2 2025. Revenue is expected to outpace peers and grow by 44.1% in 2025, driven by Blackwell's strong demand. Nvidia CEO Jensen Huang's CES keynote will likely reinforce this momentum.

Nvidia (NVDA), the leading technology company in the GPU market, has maintained its coveted "Top Pick" status with an Overweight rating and a $166 price target by Morgan Stanley [1]. This designation reflects Morgan Stanley's confidence in Nvidia's future growth prospects, particularly surrounding the highly anticipated Blackwell GPU.

Despite near-term concerns about supply constraints [2], Morgan Stanley remains optimistic about Nvidia's long-term potential. The financial firm anticipates that demand for the Blackwell GPU will dominate the narrative by the second half of 2025, driving a significant 44.1% increase in Nvidia's revenue compared to its peers [1].

Trendforce, a global leader in market intelligence and consulting services, supports this view. According to their data, sales of the Blackwell GPU are expected to peak in the second and third quarters of 2025, with manufacturing expected to rise in early 2025 [1]. This forecast aligns with Morgan Stanley's projection of a substantial revenue growth for Nvidia in 2025.

The upcoming Consumer Electronics Show (CES) in January will likely reinforce Nvidia's momentum. With CEO Jensen Huang set to give a keynote presentation, Nvidia is expected to showcase the great demand for the Blackwell GPU and its potential impact on the company's market leadership [1].

Morgan Stanley also anticipates that supply restrictions will ease by mid-2025, allowing Nvidia to fully profit from the expected success of the Blackwell launch and strengthen its competitive advantage in the GPU market [1].

In summary, despite temporary concerns, Morgan Stanley maintains a positive outlook for Nvidia, driven by the significant demand for the upcoming Blackwell GPU. With sales expected to peak in the second half of 2025 and supply constraints expected to ease, Nvidia is poised for continued growth and success in the GPU market.

[1] https://www.gurufocus.com/news/2638517/morgan-stanley-reaffirms-nvidia-as-top-pick-amid-strong-blackwell-gpu-demand
[2] https://www.benzinga.com/analyst-ratings/analyst-color/24/11/41883803/nvidias-blackwell-chip-revenue-could-hit-6-billion-next-quarter-analyst