BlackRock's GPU Series to Launch, Morgan Reiterates "Overweight" Rating on NVIDIA (NVDA.US)

Morgan Stanley said on Thursday that Nvidia NVDA.US is preparing to launch its Blackwell series of GPUs, and production growth seems "quite strong." The firm reiterated its "overweight" rating and $150 price target on Nvidia. Analyst Joseph Moore said in a note to clients that the product roadmap appeared to be unchanged, and all signs pointed to a "strong" business with a bright future after meeting with Nvidia management, including CEO Jensen Huang. "We still believe that Nvidia is likely to gain more share in the AI processor market by 2025, as the largest users of custom chips will see a significant increase in Nvidia solutions next year," Moore wrote. "Everything we heard this week reinforced this." Nvidia management added to the explanation of the initial production delays for Blackwell that caused a stir in the summer. The first version ran, but production was low, and most problems were discovered after packaging. So the shortages of wafer-level chip substrates and HBM3e exacerbated the problems. But those are now behind Nvidia, which said, "We are confident that Blackwell revenue will be in the billions in the January quarter." Most importantly, Moore wrote, there is no problem with HBM3e supply, as Nvidia said it is "very confident" it will get qualified as a third supplier from Samsung.